A landfill site produces an obnoxious odor. Homes downwind of the site rent for $1000 per month while homes upwind of the site rent for $1500 per month
If the odor is the only detectable difference between two neighborhoods, the difference in the rent is the ________ of the odor. A) social cost
B) external cost
C) private cost
D) marginal cost-benefit
E) private benefit
B
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Refer to Figure 11-5. Curve G approaches curve F because
A) marginal cost is above average variable costs. B) fixed cost falls as capacity rises. C) average fixed cost falls as output rises. D) total cost falls as more and more is produced.
A monopolist will not produce
A. in the perfectly competitive level of output when it engages in perfect price discrimination. B. a positive level of output when its marginal revenue is declining. C. a positive level of output when its price is less than average total cost but greater than average variable cost. D. in the inelastic portion of its demand curve, where marginal revenue is negative.