Multiple Choice
The Yankee Candle Company, in Hatfield, Massachusetts, makes scented candles. When strawberry-scented candles are made, townspeople enjoy the scent that covers the town. When potpourri-scented candles are made, people stay indoors to avoid the scent. We can infer that if the scented-candle markets are in equilibrium
A) neither strawberry nor potpourri scented candles will be produced
B) strawberry candles' prices are higher than the socially optimum
C) potpourri candles' prices are higher than the socially optimum
D) candle production generates only negative externalities
E) candle production technologies are inefficient
Correct Answer:
Verified
Correct Answer:
Verified
Q23: Third parties can be unintentionally affected by
Q24: The possibility that someone can reap the
Q25: Suppose the government imposes a $2 per-unit
Q26: A free rider attempts to receive benefits
Q27: Are municipal tennis courts and municipal golf
Q29: Markets without externalities create pollution.
Q30: Show or explain the externality argument for
Q31: A negative externality is the same thing
Q32: A pollution compensation tax is chosen to<br>A)
Q33: Externalities get their name from the fact