One way a government can eliminate a market failure
A) is to regulate the price so that it equals marginal cost.
B) is to implement a price floor equal to marginal cost.
C) is to regulate the price so that it is below average cost.
D) None of the above solutions will eliminate a market failure.
A
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The benefits to a program are more difficult to quantify in dollar terms that the costs to a program
a. True b. False
Given the production possibilities schedule in the above table, a combination of 60 televisions and 40 personal computers
A) is attainable but involves an inefficient use of society's resources. B) would be attainable only if a new technology of producing televisions or computers were introduced. C) is not attainable because it is not listed in the schedule. D) is not attainable because society does not have enough resources to produce this combination.