When there is no market for a negative externality, the producer of the externality _____
a. has strong incentive to consider the costs it imposes on others
b. will try to create a market
c. will limit production of the good producing the externality
d. has no incentive to consider the costs it imposes on others
d
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The above figure shows a nation's production function. Point A is
A) the maximum amount of real GDP the nation can produce. B) the labor market equilibrium quantity of employment and real GDP. C) attainable if the economy is inefficient. D) attainable if the nation uses resources efficiently. E) unattainable given the state of the economy.
Which of the following is illegal under the Sherman Act? I. A competitor agrees with another competitor on the price at which the product will be sold. II
A manufacturer refuses to supply a retailer who does not accept the manufacturer's guidance on the price. A) only I B) only II C) both I and II D) neither I nor II