Which one of the following is an example of an external cost?
A) the cost to attend college
B) labor costs to a firm
C) emissions from a factory
D) a house payment owed by a friend
Answer: C
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
The individual demand curve for an input such as labor to a firm would be the downward sloping portion of the firm's
A) marginal physical product curve. B) marginal revenue product curve. C) marginal revenue curve. D) total revenue curve.
Canada and the U.S. are the world's greatest trading partners. But they wouldn't trade at all if
a. the opportunity costs for the goods they produce are the same in both countries b. the opportunity costs are unequal for all the goods they produce c. their production possibilities curves are unequal d. they had a history of mutual retaliation e. their resources were of different qualities
An industry in which 5 firms each have a 10 percent market share and 50 firms each have a 1 percent market share will have a Herfindahl index equal to:
A. 1,100. B. 500. C. 550. D. 1,500.