Most economists believe that the market __________ produce nonexcludable public goods because of the __________.
A. will; monetary incentive they have to produce them
B. will not; externality problem
C. will not; free rider problem
D. will; market shortage that often accompanies the production of public goods.
E. none of the above
Answer: C
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In the figure above, the deadweight loss created if the industry changes from perfectly competitive to a single-price, unregulated monopoly is
A) zero. B) $8.00 per day. C) $24.00 per day. D) $36.00 per day.
Before the DVD, the VCR was a popular format for taping and replaying video. When the DVD was introduced, which of the following most accurately describes the long-run adjustment process in the VCR industry?
A) Costs increased, price increased, demand decreased, quantity decreased, profit decreased. B) Demand increased, costs increased, price increased, quantity increased, profit decreased. C) Demand decreased, quantity decreased, price decreased, profit decreased. D) Demand decreased, price decreased, quantity decreased, profit decreased.