Which of these statements is not true of both external cost and external benefit situations?
a. They both can lead to market failure
b. They both cause welfare costs.
c. They both make it possible for government intervention to lead to more efficient results.
d. All of the above are true.
d
Economics
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A liquidity trap exists when a change in the money supply immediately and drastically affects interest rates.
a. true b. false
Economics
Refer to Scenario 1-1. Had the firm not produced and sold the last 3,000 cell phones, would its profit be higher or lower, and by how much?
A) Its profit will be $6,000 lower. B) Its profit will be $700 lower. C) Its profit will be $700 higher. D) Its profit will be $6,700 higher.
Economics