Externalities exist because
A) private costs differ from social costs.
B) private costs are equal to social costs.
C) government has created them.
D) they are a function of socialism.
A
You might also like to view...
OPEC was able to function as an extremely successful cartel in the last half of the 1970s because
A) it was an association of governments rather than of private individuals. B) it was able to separate OPEC oil from non-OPEC oil and to engage in price discrimination. C) the increasing scarcity of oil produced an upward-sloping marginal revenue curve. D) the widespread expectation of much higher future prices discouraged current production. E) wars in the Middle East raised the marginal cost of producing oil.
If consumers switch away from eating margarine at the same time that the number of margarine suppliers increases, then
a. these two effects cancel each other out and there is no change in the margarine market equilibrium b. the demand curve shifts left and the supply curve shifts right c. there is a margarine price increase d. there is an excess demand for margarine e. the equilibrium quantity of margarine must increase