FIGURE 16- 1
-Refer to Figure 16- 1. Suppose the perfectly competitive market with no government intervention achieves equilibrium at point A. If the social marginal costs and social marginal benefits are represented by MC0 and MB0, respectively, then there exists
A) a positive external benefit.
B) a negative external benefit.
C) a negative external cost.
D) a positive external cost.
E) no externality whatsoever.
Correct Answer:
Verified
Q14: A flu vaccine has an associated externality.
Q15: The diagram below shows the marginal benefit
Q16: The diagram below shows the supply and
Q17: One part of the "informal defence" of
Q18: The diagram below shows the marginal benefit
Q20: If typical firms in a competitive industry
Q21: The efficient price to charge consumers for
Q22: A plausible example of market failure due
Q23: Governments usually provide a system of unemployment
Q24: Which of the following best describes the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents