Table 28.2  Firm AFirm BFirm CFirm DExternal Costs$0$________175$________Private Costs400250175200Social Costs________350$________250In Table 28.2, which firm has the greatest difference between social and private costs?

In building an economic model, variables that will be explained by the model are referred to as ________ variables

A) exogenous B) endogenous C) fluctuating D) demonstrative

Suppose that the DeBeers company faces very little competition from other firms in the wholesale diamond market. Why isn't the price of wholesale diamonds $10,000 per carat?

a. because the government would not allow such a high price b. because stockholders would not allow such a high price c. because the company would sell so few diamonds that it would earn higher profits by selling at a lower price d. All of the above are correct.