Explain why state governments may charge a fee for beach access to address the commons problem
What will be an ideal response?
A fee may be charged to impose some of the social costs on the individual. The government is attempting to reduce over-use of the beach by forcing those who use it to pay for some of the costs they impose.
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The preceding table gives monthly production information for Peter's Peanuts, a firm in a perfectly competitive industry. The market price of peanuts is $2.00 per pound. What is the marginal product from employing the fourth worker?
A) 7 pounds of peanuts B) 100 pounds of peanuts C) 400 pounds of peanuts D) 2,800 pounds of peanuts
A person who practices poisonous snake charming and does not reveal this to her health insurance company before purchasing insurance is an example of
A) moral hazard. B) adverse selection. C) signaling. D) screening.