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Author Question: Which of the following policies address the the problem posed by positive externalities? A) a ... (Read 27 times)

j.rubin

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on: Jul 1, 2018
Which of the following policies address the the problem posed by positive externalities?
 
  A) a subsidy to the agent that generates the positive externality
  B) a tax on the agent that generates the positive externality
  C) limit the activity that generates the positive externality
  D) a subsidy to the agents that benefit from the positive externality

Question 2

The producer surplus to a monopolist must be
 
  A) less than zero or the firm is in violation of anti-trust statutes.
  B) at least as great as the producer surplus in a competitive market.
  C) positive, otherwise why would the monopoly produce?
  D) the same as for a competitive market.


macybarnes

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Reply #1 on: Jul 1, 2018
Answer to Question 1

A

Answer to Question 2

B


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