Multiple Choice
Suppose that the economy is composed of two individuals, A and B. Their respective demand curves for a public good, y, are given by: yA = 50 - p/2 and yB = 25 - p. Suppose the MC of providing the public good is given by MC = 10 + 2y. A social optimum is achieved if:
A) y = 21.7.
B) y = 30.
C) y = 23.
D) y = 15.
Correct Answer:
Verified
Correct Answer:
Verified
Q30: The Coase theorem says that when information
Q31: The assignment of property rights:<br>A)enhances the wealth
Q32: Provide an economic explanation for why climate
Q33: Which of the following is not a
Q34: Which of the following solves an externality
Q36: Internalizing an externality:<br>A)is solely in the purview
Q37: If a pure public good is produced
Q38: Explain the distinction between legal and economic
Q39: Holding property rights means that:<br>A)an individual does
Q40: Better- defined property rights are preferred:<br>A)because ownership