A perfectly competitive steel mill that produces large amounts of a pollution (a negative externality) will, from a social point of view, produce:
a. too little steel.
b. the socially optimal quantity of steel.
c. too much steel.
d. too much steel only if it installs pollution control equipment.
c
Economics
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In a country with a mixed market economy, what actions may government prevent?
a. open competition among car manufacturers b. the addition of dangerous narcotics in children's cough syrup c. a reduction in fuel prices d. the bankruptcy of a small business
Economics
When GM advertises its cars, the company is trying to cause a
a. rightward shift in the supply. b. rightward shift in the demand. c. leftward shift in the supply. d. leftward shift in the demand.
Economics