Refer to Figure 5-4. Why is there a deadweight loss?
A) because the marginal social cost of producing each additional unit in excess of Q2 exceeds the marginal benefit
B) because the marginal social benefit of producing each additional unit in excess of Q2 exceeds the private cost
C) because the marginal private cost of producing each additional unit in excess of Q2 exceeds the marginal benefit
D) because the marginal private benefit of producing each additional unit in excess of Q2 exceeds the social cost
A
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In the textbook model of endogenous growth, in equilibrium, output grows at the rate of
A) sA - d. B) n + d. C) K. D) A.
If an increase in the price of peanut butter causes a decline in the demand for jelly, then
a. the goods are substitutes b. jelly is an inferior good c. the goods are complements d. both goods are inelastic e. peanut butter is an inferior good