William engages in an activity that influences the well-being of a bystander. In which of the following instances does an externality arise?
a. The impact of William's activity on the bystander is adverse, and William compensates the bystander accordingly.
b. The impact of William's activity on the bystander is adverse, but William fails to compensate the bystander.
c. The impact of William's activity on the bystander is beneficial and the bystander compensates William accordingly.
d. Externalities arise in all of the above cases.
b
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"The distribution of income should be left to the market" is an example of a positive economic statement
Indicate whether the statement is true or false
The demand for a monopoly's output is p = 50 - Q. The monopoly's marginal cost is $4 and the market wage is $2. How many units of labor are demanded by the monopoly?
A) L = 46 B) L = 23 C) L = 0 D) L = 10