In the above figure, S1 represents the supply curve which includes private costs, and S2 is the supply curve which includes social costs
If the firm is producing a product that has external costs that the firm does have to pay, what will be the equilibrium price and quantity? A) P1, Q4
B) P2, Q3
C) P4, Q1
D) P3, Q2
D
Economics
You might also like to view...
In the long-run ISLM model and with everything else held constant, the long-run effect of an autonomous fall in consumption expenditure is to ________ real output and ________ the interest rate
A) increase; increase B) increase; not change C) not change; increase D) not change; decrease
Economics
Politicians often highlight the plight of a single individual as a reason to support a particular project or agenda. In this case, politicians are using
A) the Khaneman effect. B) the Allais effect. C) framing. D) prospect theory.
Economics