Long Beach Island, off the coast of New Jersey, is considering enhancing its system of satellite towers to help communication during emergencies such as hurricanes
A study showed that in Superstorm Sandy the existing number of satellite towers resulted in the marginal social cost of a satellite tower being less than the marginal social benefit. To achieve efficiency, this study indicates that the A) system should be left as is because the quantity of satellite towers is efficient.
B) system should be reduced in size because the quantity of satellite towers is more than the efficient quantity.
C) system should be expanded because the quantity of satellite towers is less than the efficient quantity.
D) None of the above because the study erred in comparing the marginal social cost to the marginal social benefit since it should have compared the marginal private cost to the marginal private benefit.
C
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Rationing through the price system
A) leads to an inefficient use of available resources. B) leads to high prices. C) works only with government interference. D) leads to an efficient use of available resources.
All of the following are true regarding the Federal Trade Commission's (FTC) Bureau of Consumer Protection except which one?
A) It relies on consumers and competitors to report false advertising. B) It is a federal agency. C) It generally tries to convince companies to cease or alter false advertising. D) It cannot bring a civil case against a firm's managers for false advertising.