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Author Question: When the production of a good has a marginal external cost, which of the following occurs in an ... (Read 29 times)

fasfsadfdsfa

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on: Jun 29, 2018
When the production of a good has a marginal external cost, which of the following occurs in an unregulated market?
 
  i. Overproduction relative to the efficient level will occur.
  ii. The market price is less than the marginal social cost at the equilibrium quantity.
  iii. A deadweight loss occurs.
  A) i only
  B) ii only
  C) iii only
  D) i and ii
  E) i, ii, and iii

Question 2

Some sales managers are talking sho
 
  A) Since our competitors raised their prices our sales have doubled.
  B) It has been an unusually mild winter; our sales of wool scarves are down from last year.
  C) We decided to cut our prices, and the increase in our sales has been remarkable.
  D) none of the above
Foundations of Microeconomics ¦ Bade, Parkin ¦ 8th Edition
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amit

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Reply #1 on: Jun 29, 2018
Answer to Question 1

E

Answer to Question 2

C


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fasfsadfdsfa

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Reply #2 on: Jun 29, 2018
Thank you :)


amit

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Reply #3 on: Jun 29, 2018
Happy to help you


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