Which of the following is true concerning negative externalities?

A. Perfect competition is better than monopoly from the viewpoint of society even in the presence of negative externalities.
B. With negative externalities, a monopoly will always produce an output level less than is socially efficient.
C. Firms tend to produce more than the efficient level of output.
D. Society gains because firms do not pay the external costs of production.

Answer: C

Economics

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If you hold money in anticipation of household emergency expense, this represents the::

a. speculative demand for holding money. b. transactions demand for holding money. c. opportunity cost motive for holding money. d. precautionary demand for holding money. e. regressive cost of holding money.

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What happens to the MPP of labor when the price of the good produced increases?

a. It increases proportionally with the price. b. It decreases proportionally with the price. c. Nothing happens because it stays the same. d. It falls because quantity demanded falls. e. It rises because quantity demanded falls.

Economics