The free rider problem _____
a. leads to an understatement of demand for the good in question
b. is beneficial because it leads to lower public spending
c. is functionally equivalent to the transitional gains trap
d. is more prevalent in small groups
a
Economics
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A Lorenz curve can be used to illustrate
A) the supply of labor. B) the substitution effect. C) the income effect. D) the distribution of income.
Economics
At its present rate of output, 200 units, a perfectly competitive firm has variable costs of $10,000 and marginal cost of $50, and accepts the market price of $40 per unit. To improve its profit/loss situation, this firm should
a. increase output b. reduce output but not to zero c. maintain the present rate of output d. shut down e. raise the price
Economics