A firm producing a smoke externality is producing
a. more than the socially optimal quantity of output.
b. less than the socially optimal quantity of output.
c. exactly the socially optimal quantity of output.
d. There is insufficient information to answer.
a
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The CPI measures the average prices paid by __________ for _________
A. urban consumers; a fixed basket of consumption goods and services B. urban consumers; the average basket of goods and services they buy C. all consumers; housing, transportation, and food D. everyone who earns an income; the necessities of life
A firm in a competitive market currently produces and sells 500 doorknobs for a price of $10 per doorknob. Which of the following events would decrease the firm's average revenue?
a. The firm increases its output above 500 doorknobs. b. The firm decreases its output below 500 doorknobs. c. The market price of doorknobs rises above $10. d. The market price of doorknobs falls below $10.