Homework Answers
21. Option B.
- Compared with the efficient outcome, the market price of a good that generates external benefits is too low.
- Goods having external benefits are always priced lower than their efficient level, this is because those external benefits are incurred by any firm or an individual due to the actions of any other third party who was not directly involved in the transaction.
22. Option B.
- Products that create external benefits are under consumed usually.
- This is because the consumer's often prefer getting private benefits of consumption as most of the time the external benefits of many individuals are always ignored.
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QUESTION 21 Compared with the efficient outcome, the market price of a good that generates external...
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Products that create external benefits are over-consumed because the private benefits exceed the private costs under-consumed...
Products that create external benefits are over-consumed because the private benefits exceed the private costs under-consumed because consumers only consider the private benefits of consumption optimally consumed as long as private benefits equal private costs underconsumed because the social costs exceed the social benefits
Products that create external benefits are over-consumed because the private benefits exceed the private costs under...
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Products that create external benefits are over-consumed because the private benefits exceed the private costs under consumed because consumers only consider the private benefits of consumption O optimally consumed as long as private benefits equal private costs underconsumed because the social costs exceed the social benefits QUESTION 23 The Coase theorem suggests that private bargains will ensure the efficiency of markets even when externalities exist O but only in the presence of government regulation if consumers have more information regarding...
QUESTION 22 Products that create external benefits are over-consumed because the private benefits exceed the private costs under-consumed because consumers only consider the private benefits of consumption O optimally consumed as long as private benefits equal private costs O underconsumed because the social costs exceed the social benefits QUESTION 23 The Coase theorem suggests that private bargains will ensure the efficiency of markets even when externalities exist but only in the presence of government regulation if consumers have more information...
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men u nchsp course assessment_id 1333381_1&course_id 1773666 1&content id=43280655 1&step rul - QC Libraries Queens College Question Completion Status QUESTION 36 2 points Average total cost is very high when a small amount of output is produced because average variable cost is high average fixed cost is high marginal cost is high marginal product is high 2 points Save Arts QUESTION 37 Average total cost is increasing whenever total cost is increasing marginal cost is increasing marginal cost is less...
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