When a firm generates external benefits, a more efficient outcome would result if
a. the firm produced a larger output level.
b. the firm reduced its output level.
c. a tax were levied on the firm equal to the dollar amount of the externalities.
d. price were fixed below the firm's per-unit cost.
A
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The economic way of thinking is
A) a biased perspective at the present time, and we should eliminate bias from economics. B) a biased perspective, but the existence of bias does not mean the discipline should be condemned. C) biased only when it is used to argue for particular policies. D) unbiased because economics is a science. E) unbiased insofar as its conclusions are drawn exclusively from actual facts.
Over the range of positive, but diminishing, marginal returns for an input, the total product curve:
A. Falls B. Rises at a constant rate C. Rises at a decreasing rate D. Rises at an increasing rate