Explain why the social demand curve for a public good is the vertical sum of the demand curves of each individual
What will be an ideal response?
A public good lacks rivalry, so many people can get pleasure from the same unit of output. Thus for each unit of public good, the total willingness to pay is the sum of everyone's willingness to pay because everyone can consume the good.
Economics
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The government of Eduland is planning to impose a tariff on the import of sports bikes. How is this policy likely to affect the domestic market for sports bikes in Eduland?
What will be an ideal response?
Economics
Mr. Peabody chooses to invest in companies that produce goods and services at the lowest possible cost. Mr. Peabody is investing in companies that are
A) guaranteed to make a profit. B) productively efficient. C) allocatively efficient. D) all of the above
Economics