As long as price exceeds AVC, the firm is better off

Everything else held constant, if the expected return on RST stock declines from 12 to 9 percent and the expected return on XYZ stock declines from 8 to 7 percent, then the expected return of holding RST stock ________ relative to XYZ stock and

demand for XYZ stock ________. A) rises; rises B) rises; falls C) falls; rises D) falls; falls

A possible solution to the problems of external benefits is

A) to tax those receiving the extra benefits. B) production of the good by government. C) effluent fees. D) to restrict the amount of the good through direct government regulation.