From society's perspective, in the presence of a supply-side market failure, the last unit of a good produced typically:
A. generates more of a benefit than it costs to produce.
B. produces a benefit exactly equal to the cost of producing the last unit.
C. maximizes the net benefit to society.
D. costs more to produce than it provides in benefits.
Answer: D
Economics
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Refer to the figure above. If the monopolist faces a constant marginal cost of $2, what is the optimal quantity that it should produce?
A) 20 units B) 40 units C) 45 units D) 80 units
Economics
Which of the following is not included in aggregate demand?
What will be an ideal response?
Economics