An externality arises when:
A) an economic good is produced by many firms.
B) the actions of a decision maker affect other decision makers in a way not reflected in the market price.
C) the actions of a decision maker do not affect other decision makers.
D) the market equilibrium is inefficient.
Correct Answer:
Verified
Q3: Which of the following is a real-world
Q4: What must be true for the provision
Q5: A nonexclusive good:
A)is also non-rival.
B)is also rival.
C)must
Q6: A public good is a good:
A)that is
Q7: Which of the following is a real-world
Q9: Which of the following is a real-world
Q10: An example of a positive externality is:
A)a
Q11: When the market for product Y includes
Q12: A governmental limit on the amount of
Q13: An example of a good that is
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