Externalities tend to cause markets to be

a. inefficient.
b. unequal.
c. unnecessary.
d. overwhelmed.

a

Economics

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Suppose Russia exports sunflower seeds to Ireland and imports coffee from Brazil. This situation suggests

a. Russia has a comparative advantage over Brazil in producing coffee, and Ireland has a comparative advantage over Russia in producing sunflower seeds. b. Russia has a comparative advantage over Ireland in producing sunflower seeds, and Brazil has a comparative advantage over Russia in producing coffee. c. Russia has an absolute advantage over Ireland in producing sunflower seeds, and Brazil has an absolute advantage over Russia in producing coffee. d. Russia has an absolute advantage over Brazil in producing coffee, and Ireland has an absolute advantage over Russia in producing sunflower seeds.

Economics

If you were going to expand a facility by adding 10% more seats, but because of the location of those seats the costs of providing ushers and other personnel to deal with the new seats was rising (on a per seat basis), the new MC curve would look like the previous one, except that it would

A. no longer be a backward L but would be upward sloping once the old capacity was reached. B. just shift up. C. just shift to the right. D. just shift to the left.

Economics