If producing a good generates pollution (a negative externality), from a social perspective
a. The price will be too low and the quantity produced will be too low
b. The price will be too low and the quantity produced will be too high
c. The price will be too high and the quantity produced will be too low
d. The price will be too high and the quantity produced will be too high
e. The price will be too low but the quantity produced will be correct
Answer: b. The price will be too low and the quantity produced will be too high
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Is a firm technologically efficient if it uses the latest technology? Why or why not?
What will be an ideal response?
Firms in an oligopoly market will have a more difficult time maintaining price coordination when:
A) demand for the firms' products remains stable. B) the firms' cost structures are similar. C) the firms' products are highly differentiated. D) each firm controls the same share of the market.