Author Question: If a policy helps some but harms others A) the result is a Pareto improvement for the people who ... (Read 59 times)

wenmo · **on:** Jul 1, 2018

If a policy helps some but harms others

A) the result is a Pareto improvement for the people who are helped.
B) then the cost-benefit analysis will show a net increase in surplus and is therefore desirable.
C) we cannot use the Pareto principle to evaluate whether or not the policy is desirable.
D) it is too hard to determine whether or not the outcome is desirable.

Question 2

The above figure shows the cost curves for a competitive firm. The firm will shut down in the short run if price falls below

A) 5.
B) 10.
C) 11.
D) 15.