Refer to the above figure. S1 is the supply curve that includes only private costs. S2 is the supply curve that includes social costs. From this figure we know that
A) an external benefit exists.
B) private costs are less than social costs.
C) private costs equal social costs.
D) private costs are greater than social costs.
B
Economics
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A dominant strategy exists if:
A. both players have the highest payoff when they make the same choice. B. a player has a strategy that yields the highest payoff regardless of the other player's choice. C. both players make the same choice. D. one strategy yields the highest possible payoff.
Economics
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Economics