What the economist calls externalities create social problems
A) because opportunity costs are low when people live close to one another.
B) only when the externalities are negative spillovers.
C) partly because people have a limited ability to empathize.
D) when people know about all the consequences of their behavior.
C
You might also like to view...
Economies of scale will create a barrier to entry in an oligopoly industry when
A) a firm's minimum efficient scale occurs where long-run average total costs are constant. B) the typical firm's long-run average total cost curve reaches a minimum at a level of output that is a small fraction of total industry sales. C) the industry's four-firm concentration ratio is less than 40 percent. D) the typical firm's long-run average total cost curve reaches a minimum at a level of output that is a large fraction of total industry sales.
In the typical bathtub, the flow of water into the tub is controlled by a faucet independently of the quantity of water in the tub
How is the bathtub analogy of the steady state in the Solow model different? How does this difference relate to the phenomenon of convergence?