The desirable level of output in a perfectly competitive market if there exists a detrimental externality is
a. the point at which MSC curve intersects the marginal revenue curve.
b. the point at which MSC intersects the MPC.
c. the point at which MSC intersects MPC.
d. the point at which marginal revenue curve intersects the MPC.
a
Economics
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Suppose Motorland's government imposes a tax of $1.50 per gallon of gasoline sold. With the tax, the market will
A) underproduce by 0.2 million gallons of gasoline a month. B) underproduce by 0.1 million gallons of gasoline a month. C) overproduce by 0.1 million gallons of gasoline a month. D) produce the efficient quantity of gasoline.
Economics
If marginal cost is below average cost, marginal cost must be rising.
Answer the following statement true (T) or false (F)
Economics