The greater the magnitude of the external costs of production,
a. The larger is the deadweight loss from overproduction
b. The greater would be the optimal pollution tax.
c. The further the private market solution ignoring those costs would deviate from the socially efficient level of output.
d. All of the above are true.
d
Economics
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The above figure shows the marginal private benefit and marginal social cost of a college education. A $10,000 subsidy to colleges results in a college charging tuition of
A) $0. B) $10,000. C) $20,000. D) $30,000.
Economics
A fundamental aspect of economics is to
A) ensure that every firm makes a profit. B) analyze how choices are made. C) satisfy all our wants. D) make sure that our resources will always be unlimited.
Economics