The market system fails to provide the efficient output of public goods because:
a. people place no value on public goods
b. private firms cannot restrict the benefits from those goods to consumers who are willing to pay for them.
c. public enterprises can produce those goods at lower cost than private firms.
d. public goods create widespread spillover costs.
b
Economics
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At an output level of 100, a monopolist faces MC = 15 and MR = 17. At output level q = 101, the monopolist faces MC = 16 and MR = 15. To maximize profits, the firm
A) should produce 100 units. B) should produce 101 units. C) The firm cannot maximize profits. D) The firm is not a monopoly.
Economics
Which of the following require firms to pay to pollute? (i) corrective taxes (ii) tradable pollution permits (iii) pollution regulations
a. (i) only b. both (i) and (ii) c. (iii) only d. both (ii) and (iii)
Economics