Suppose the production of widgets generates negative externalities but no positive externalities. If widget producers suddenly had to pay the true marginal cost of their product for every unit they produced, including all externalities, producers would
A. have less of an incentive to control their pollution output.
B. produce and sell at a lower price than before.
C. produce less than the current level of output.
D. produce more than the current level of output.
Answer: C
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When describing the IMF broad country classification, the most accurate statement is that
A) most of the nations in Western Europe are considered emerging market economies. B) the emerging market economies are countries that were, until the early 1990s, part of the Soviet Union or its satellites. C) about 50 percent of the world's population live in the advanced economies and the other 50 percent live in the emerging market and developing economies. D) most of the world's population lives in advanced economies. E) the category with the greatest number of countries is the advanced economies.
The greater the amount of time that passes after a price change, the
A) less elastic supply becomes. B) more elastic supply becomes. C) more negative supply becomes. D) steeper the supply curve becomes. E) None of the above answers is correct.
Many fast-food restaurants have signs on their cash registers that read, "Your meal is free if the cashier does not give you a receipt". What might be the purpose of such a sign? Hint: there is a moral hazard problem here
What will be an ideal response?
When a monopolist engages in perfect price discrimination,
A) the marginal revenue curve lies below the demand curve. B) the demand curve and the marginal revenue curve are identical. C) marginal cost becomes zero. D) the marginal revenue curve becomes horizontal.