Identify the externality that arises when basic research leads to new general knowledge. Is the externality positive or negative?
Other people, besides the person(s) who engaged in the research, benefit from the new knowledge. A positive externality arises as a result.
Economics
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Because of product differentiation, a monopolistically competitive firm: a. possesses some degree of market power
b. is very similar to a perfectly competitive firm. c. faces a perfectly elastic demand curve. d. is unaffected by the elasticity of demand.
Economics
Budget deficits cause interest rates to be high
a. True b. False
Economics