Which of the following episodes would most likely contain an externality?
A) You cannot afford to buy groceries.
B) You decide to grow your own vegetables in your backyard where no one else can see them.
C) You decide to grow flowers in your front yard where everyone else can see them.
D) You eat all the vegetables you grow yourself.
C
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Viceroy Vacations is deciding on how to price its vacation packages. Which of the following strategies would you suggest?
a. Price the flight, hotel and car separately b. Advertise it as an all-inclusive vacation c. Give them away as free vacations to everyone d. Close down your company. No one goes on vacations anymore
Suppose the domestic supply (QS) and demand (QD) for skateboards in the United States is represented by the following set of equations:QS = -60 + 3PQD = 390 - 2PCalculate the change in producer surplus when the United States engages in free trade and imports skateboards from the rest of the world at a per unit price of $75.
A. +$3,375. B. +$2,812.50. C. -$2,812.50. D. -$3,375.