This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If a good has an external cost, the A) unregulated competitive market outcome is efficient. B) ... (Read 131 times)

CBme

  • Hero Member
  • *****
  • Posts: 548
on: Jun 29, 2018
If a good has an external cost, the
 
  A) unregulated competitive market outcome is efficient.
  B) marginal private cost reflects the external cost.
  C) unregulated competitive market outcome is inefficient.
  D) marginal social benefit is equal to the marginal social cost when the market is in equilibrium.
  E) external benefit must equal the external cost.

Question 2

Claudia went to a department store to buy a few things for her new house. She found out that several items in the store were on discount and decided to make the most of the deals offered.
 
  However, as she started using the things that she bought, she realized that many of these items were defective. This happened due to: A) the presence of positive externalities.
  B) the presence of negative externalities.
  C) asymmetric information.
  D) moral hazard.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Madisongo23

  • Sr. Member
  • ****
  • Posts: 325
Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

C


CBme

  • Hero Member
  • *****
  • Posts: 548
Reply #2 on: Jun 29, 2018
Correct answers!


Madisongo23

  • Sr. Member
  • ****
  • Posts: 325
Reply #3 on: Jun 29, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

external combustion engine external combustion engine
Range of Motion of the Hip Joint, Position of the Leg for Full External Rotation Range of Motion of the Hip Joint, Position of the Leg for Full External Rotation
Typical Startup Cost Categories Cont. Typical Startup Cost Categories Cont.
Positioning of external auditory canal for tympanic membrane visualization Positioning of external auditory canal for tympanic membrane visualization
Cost of Going to School Cost of Going to School
Stock Market Tracks Growth in GDP Stock Market Tracks Growth in GDP
Video: Factors that affect conduction rates (myelination, axon diameter & temperature)

For a complete list of videos, visit our video library