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

Author Question: Externalities can lead to inefficient economic outcomes because: A) firms do not have to pay the ... (Read 78 times)

formula1

  • Hero Member
  • *****
  • Posts: 666
on: Jul 1, 2018
Externalities can lead to inefficient economic outcomes because:
 
  A) firms do not have to pay the full cost associated with using inputs that cause pollution.
  B) firms that produce public goods tend to be monopolies.
  C) Both A and B are correct.
  D) none of the above

Question 2

Suppose the federal government allows labor unions to act as the sole seller in labor markets, but the government collects an annual 10,000,000 administrative fee from each union in this situation.
 
  Assuming this fee is not so large that it forces the unions to disband, what is the impact of this fee on the equilibrium wage and employment level in the monopolized labor market? A) Wages and employment decline.
  B) Wages increase and employment declines.
  C) Employment increases and wages decline.
  D) No change in wages or employment levels.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Chelseyj.hasty

  • Sr. Member
  • ****
  • Posts: 319
Reply #1 on: Jul 1, 2018
Answer to Question 1

A

Answer to Question 2

D


formula1

  • Member
  • Posts: 666
Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)

lkanara2

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

The Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

Did you know?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Formation of an atherosclerotic plaque within a coronary artery; may lead to coronary artery disease Formation of an atherosclerotic plaque within a coronary artery; may lead to coronary artery disease
A properly mounted 12-lead, single channel ECG. A properly mounted 12-lead, single channel ECG.
A Comparison of Economic Systems A Comparison of Economic Systems
economic question economic question
economic question economic question
economic question economic question
Video: ADH and the arterioles, kidneys, sweat glands and the Atrial natriuretic peptide (ANP)

For a complete list of videos, visit our video library