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Author Question: If producing a good or a service creates pollution, then A) an unregulated competitive market ... (Read 80 times)

stevenposner

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If producing a good or a service creates pollution, then
 
  A) an unregulated competitive market produces an efficient output.
  B) the industry's supply curve includes the extra cost of pollution.
  C) at the unregulated, competitive market equilibrium quantity, marginal social cost is greater than the equilibrium price.
  D) at the unregulated, competitive market equilibrium quantity, marginal social benefit and marginal social cost are equal.
  E) at the unregulated, competitive market equilibrium quantity, marginal social benefit is less than the equilibrium price.

Question 2

Managers of a natural monopoly regulated using rate of return regulation have an incentive to
 
  A) exaggerate the firm's costs.
  B) underestimate the firm's costs.
  C) minimize the monopoly's deadweight loss.
  D) make zero economic profit.
  E) exaggerate the firm's profit.


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Mholman93

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stevenposner

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)


komodo7

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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