The external marginal cost of producing coal is MCexternal = 8Q while the internal marginal cost is MC internal = 6Q. The inverse demand for coal is given by P = 180 ? 4Q. What is the socially efficient level of output?

Izzy Amador is a highly talented tattoo artist. She has chosen to specialize in tattoo art because of all of the following except

A) for her, this is the most lucrative way to purchase the products that she wants to consume. B) her tattoos are highly esteemed by tattoo lovers who are willing to pay very high prices. C) her opportunity cost of pursuing another career is very low. D) she obviously has a comparative advantage in tattoo art.

Both the classical and monetarist models assume all of the following except

a. perfectly flexible prices. b. perfectly flexible wages. c. perfect information. d. vertical aggregate supply curve in the long-run.