Since air pollution creates a negative externality,
a. social welfare will be enhanced when some, but not all air pollution is eliminated.
b. social welfare is optimal when all air pollution is eliminated.
c. governments should encourage private firms to consider only private costs.
d. the free market result maximizes social welfare.
a
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According to this Application, what was the approximate value of Wal-Mart's value added in 2014?
A) $115 billion B) $286 billion C) $374 billion D) $661 billion
Using the concentration ratio to measure the degree of competition
A) may understate the degree of competition because it ignores imported goods. B) may overstate the degree of competition because it ignores imported goods. C) may overstate the degree of competition because inter-industry competition is ignored. D) may understate the degree of competition because market share changes annually.