Author Question: Which of the following occurs when an externality is internalized? A) Higher social well-being ... (Read 64 times)

PhilipSeeMore · **on:** Jun 29, 2018

Which of the following occurs when an externality is internalized?

A) Higher social well-being
B) Higher private benefit
C) Larger deadweight loss
D) Higher returns to scale

Question 2

The above figure shows the U.S. market for replacement cell phone batteries. Suppose the U.S. government imposes the tariff illustrated in the figure. The tariff is equal to ________ and the price U.S.

consumers pay ________ compared to the price paid when there was free trade. A) 2; decreases
B) 14; decreases
C) 2; increases
D) 12; increases
E) 14; increases