What are social costs? How do they differ from private costs?
What will be an ideal response?
Social costs are costs borne by society whenever a resource use occurs. Social costs include private costs plus external costs, so when external costs are zero, social costs are the same as private costs.
Economics
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Suppose that the price elasticity of demand for an ice cream cone is -1.9 . If the local ice cream shop owner wants to increase total revenue, what would you recommend he or she do?
What will be an ideal response?
Economics
If the real wage is equal to 7 widgets, and only an integer number of workers can be hired, the Widget company should hire
A) 2 workers. B) 3 workers. C) 4 workers. D) 5 workers.
Economics