When negative externalities exist in a market, that market will produce too little output compared to the socially efficient level of output

Suppose firms A and B each make T-shirts. Firm A's production function is q = L0.5 K0.5. Firm B's production function is q = 1.2 ? L0.5 K0.5

If the two firms each hire the same amounts of capital and labor, compare the two firms in terms of APL and MPL.

A sale of U.S. government securities by the Fed causes a(n)

A) expansion of the money supply equal to the amount of the securities sold. B) contraction of the money supply equal to the amount of the securities sold. C) expansion of the money supply of more than the amount of the securities sold. D) contraction of the money supply of more than the amount of the securities sold.