In a competitive market, a negative externality creates a deadweight loss because
A) the cost of the externality is double counted.
B) a harm is generated.
C) price equals social marginal cost.
D) price equals private marginal cost.
D
Economics
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Since classical economists believe that both V and Q are constants for an economy in short-run equilibrium, the equation of exchange becomes a theory in which:
a. the quantity of money explains prices. b. the quantity of money explains velocity. c. the quantity of money explains real GDP. d. changes in M cause changes in V. e. prices are never flexible
Economics
What characterizes a constant-cost industry and what causes it to be a constant-cost industry?
What will be an ideal response?
Economics