Multiple Choice
Suppose that the market price of good A equals the firm's cost of producing that good, but it does not reflect any costs imposed on society. Which of the following is FALSE?
A) The good is priced too low.
B) An external benefit is associated with good A.
C) Resources are over-allocated in the production of good A.
D) Too much of good A is being produced.
Correct Answer:
Verified
Correct Answer:
Verified
Q107: Assume the production of a good gives
Q108: What are the three goals of the
Q109: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Graphically, the presence
Q110: When a good causes positive external benefits
Q111: An example of a public good is<br>A)
Q113: Why are public goods provided by the
Q114: All of the following are economic functions
Q115: What is the assumption underlying public-choice theory?<br>A)
Q116: What is the free-rider problem, and how
Q117: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -In the above