Refer to the competitive market diagram for product Z. Assume that the current market demand and supply curves for Z are D 2 and S 2 . If there are substantial external benefits associated with the production of Z, then:
A. efficient resource allocation occurs at output G and price B because the market
mechanism does not measure all benefits.
B. an output smaller than G would improve resource allocation.
C. government should levy a per-unit excise tax on Z to shift the demand curve toward D 1 .
D. an output greater than G would result in a more efficient allocation of resources.
D. an output greater than G would result in a more efficient allocation of resources.
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An example of a monopoly would be
A) one of many U.S. wheat farmers. B) one of the few U.S. auto makers. C) AT&T cell phone service. D) the local water company. E) Taco Bell
The further in the future a payment is received, the more it is worth today.
Answer the following statement true (T) or false (F)