Which of the following is not a property of a firm's cost curves?
a. Marginal cost must eventually rise as a result of diminishing marginal product.
b. Average total cost is U-shaped.
c. Economies of scale will exist when average total cost falls as output rises.
d. Average total cost will cross marginal cost at the minimum of marginal cost.
d
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Which of the following is not true for a public good?
a. Marginal cost of serving public good to one more person is zero. b. Free rider problem arises in case of public goods. c. Exclusion is not possible in most of the public goods. d. Public goods include only material commodities.
Externalities are the:
A.) Domestic economic impact of foreign events. B.) Difference between social and private costs or benefits. C.) Outside costs that producers absorb. D.) Effects of government actions on the private sector.