According to the text, what best explains the price for federal land that would have maximized real GNP?
a. Some price above zero that maximizes government revenues to be redistributed fairly to the people.
b. Some price above zero that minimizes negative environmental externalities.
c. A price equal to zero that eliminates the welfare loss associated with land not used for production.
d. A subsidized price that distributes land based on egalitarian principles.
c. A price equal to zero that eliminates the welfare loss associated with land not used for production.
You might also like to view...
If a college wanted to increase its revenues from tuition payments, should it increase the tuition of day and evening students alike?
What will be an ideal response?
If a firm sells 5 units of output at $9 per unit and 6 units of output when price is reduced to $8, its marginal revenue from selling the sixth unit is
A) $1. B) $48. C) $45. D) $3.