When a negative externality is present in a market, when a quota is imposed, it is:
A. efficient, because the market consumes the efficient level.
B. not efficient, because individuals' net benefits from the amount set by the quota are different.
C. efficient, because the net benefit of everyone at the amount set by the quota is equal.
D. not efficient, because the marginal cost outweighs the marginal benefit for too many consumers at the amount set by the quota.
B. not efficient, because individuals' net benefits from the amount set by the quota are different.
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All other things constant, when the interest rate increases: a. the demand for investment curve shifts to the right
b. the demand for investment curve shifts to the left. c. there is a movement downward along the demand for investment curve. d. there is a movement upward along the demand for investment curve. e. GDP increases.
Using the linear approximation system to estimate the profit maximizing price requires that managers have information on the cost of production
A. and the decision-making process of the marketplace. B. the total population and the percentage of people in labor force. C. the current price, the current quantity sold, and changes in price and quantity. D. and the nature of the production function.