Compared to ideal economic efficiency, when the production of a good generates external costs, competitive markets will result in an output that is too:
a. large and a price that is too high. b. large and a price that is too low.
c. small and a price that is too high. d. small and a price that is too low.
b
Economics
You might also like to view...
Demand for products such as insulin, cancer drugs, and tobacco is usually inelastic.
a. true b. false
Economics
Because most asset yields are affected in a systematic way by economic conditions, most securities in portfolios
A) have a covariance greater than zero. B) have negative yields. C) have covariance greater than one. D) increase in risk as new assets are added.
Economics