At the optimal quantity of a public good:
A. marginal benefit exceeds marginal cost by the greatest amount.
B. total benefit equals total cost.
C. marginal benefit equals marginal cost.
D. marginal benefit is zero.
Answer: C
Economics
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If in Chicago the interest rate is 5 percent a year and in Vancouver it is 4 percent a year, ________
A) the quantity of Canadian dollars purchased will increase B) the Canadian dollar is expected to depreciate C) interest rate parity does not exist D) the U.S. dollar is expected to depreciate
Economics
The profit-maximizing monopolist will operate in a price range over which
A) demand is elastic. B) demand is inelastic. C) the price elasticity of demand is less than 1. D) supply is elastic.
Economics