In the presence of a negative externality in production, a monopoly will produce
A) more than the social optimum.
B) less than the social optimum.
C) the social optimum.
D) All of the above are possible.
D
You might also like to view...
A business cost is always
A) a sunk cost. B) a marginal cost. C) a consequence of managerial decisions. D) measurable if we use sophisticated accounting techniques.
Why are international investors who have invested in developing nations favoring foreign direct investment and portfolio investment over loans?
A) The process of making loans is usually more difficult for investors to do than foreign direct and portfolio investment. B) The interest rate charged on the loans is usually lower than what can be earned in the U.S. C) It is illegal for banks to make loans to foreign firms. D) Investors have an aversion to owning dead capital and want to make sure that the resources they own do not become dead capital.
Other things equal, which of the following is the result of increased saving?
a. a decrease in interest rates b. a decrease in prices c. forgone consumption d. all of the above
An economic principle that explains why people pursue different occupations is
A) absolute advantage. B) international trade. C) comparative advantage. D) NAFTA.