Homework Answers
Common source of market failure is pricing by firms with market power and market provision of a good which generates an externality. Hence, option(D) is correct.
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Question 25 (1 point) Which of the following is a common source of "Market Failure"? Pricing...
Question 11 (1 point) A film operating in a "Perfectly Competitive Market" has "No Market Power"...
Question 11 (1 point) A film operating in a "Perfectly Competitive Market" has "No Market Power" which implies that the firm would lose all its customers if it attempted to increase price above the prevailing market price. faces a "vertical demand curve" for its output. does not have to decrease price in order to increase the quantity of output sold. More than one (perhaps all) of the above answers is correct. Bi e
Question 11 (1 point) Which of the following is correct regarding the market pricing method of...
Question 11 (1 point) Which of the following is correct regarding the market pricing method of price setting? A key consideration when doing market pricing is to determine what percent above cost the price will be. The market pricing method is often ineffective for new technology products where customers lack understanding of the product. Market pricing relies on evaluating what competitors are charging in the market in order to set price. Break-even pricing falls within the market pricing method.
2. Which of the following is not a likely source of market failure? Asymmetric information Moral...
2. Which of the following is not a likely source of market failure? Asymmetric information Moral hazard Externalities Perfect competition 3. Which of the following categories most accurately describes the Social Security tax in the United States? Proportional Progressive Regressive Value-added tax 4. Which of the following best describes a progressive tax? A tax under which the percentage of income paid as tax increases as income increases A tax under which the percentage of income paid as tax decreases as...
Question 63 (1 point) Which of the following is an example of an external cost (or...
Question 63 (1 point) Which of the following is an example of an external cost (or negative externality)?! The fall in the price of wheat because good weather produced a large crop O A company moves a factory to China, closing its Canadian factory. The fall in the price of gasoline because oil prices are falling, making Canadian oil industry workers jobless. Taxes are increased to pay for increased government spending during the pandemic. The increased chance of getting the...
19. Which of the following is not a negative externality? a. air pollution. b. high oil...
19. Which of the following is not a negative externality? a. air pollution. b. high oil prices. c. clear-cutting in forests. d. litter. 20. Which of the following types of goods is least likely to be provided by the market? a. a good that is rival in consumption and for which exclusion is possible. b. a good that is nonrival in consumption and for which exclusion is possible. c. a good that is nonrival in consumption and for which exclusion...
Which of the following is correct regarding the limit pricing model? There is more than one...
Which of the following is correct regarding the limit pricing model? There is more than one answer to this question. You must mark all of the correct answers to receive full credit for this question. At the limit price and corresponding quantity, the residual demand is zero. The residual demand is how much is left over of the total market demand after accounting for the amount produced by the incumbent. The best that a new entrant can do when an...
The policy of laissez-faire was a. promoted by John Stuart Mill b. attacked by Adam Smith...
The policy of laissez-faire was a. promoted by John Stuart Mill b. attacked by Adam Smith c. suggested by Karl Marx d. invented by Lyndon Johnson The free rider problem refers to people who a. will only consume a public good if it is free. b. are not willing to pay for a public good because they lack information about its potential benefits. c. will not voluntarily pay for a public good even though they would benefit from its provision....
Which of the following is correct regarding penetration pricing? There is more than one answer to...
Which of the following is correct regarding penetration pricing? There is more than one answer to this question. You must mark all of the answers to receive full credit for this question. It is a temporary pricing strategy intended to quickly attract consumers to a firm. It is a strategy that is commonly found among perfectly competitive firms. It is used by firms to overcome network effects of well- established firms. It is used by firms with a long history...
26. what environmental problem arises from common property resources? a. negative externality. b. overexploitation. c. government...
26. what environmental problem arises from common property resources? a. negative externality. b. overexploitation. c. government failure. d. high transaction cost. 27. Externalities are a. exports. b. illegal businesses. c. prisoners on work release d. costs or benefits not reflected in market prices. 29. The efficient quantity of a public good is that for which marginal social cost equals a. marginal private cost. b. marginal external cost. c. average social cost. d. marginal social benefit. 30. Which of the following...
15. Causes of market failure include a. externalities and market power. (b) market power and incorrect...
15. Causes of market failure include a. externalities and market power. (b) market power and incorrect forecasts of consumer demand. c. externalities and foreign competition. d. incorrect forecasts of consumer demand and foreign competition. 16. Which of these consumption activities will most likely impose an external cost? a. An executive plays a vigorous game of golf. b. A student in a dorm plays her CDs at 120 decibels late at night. A young mother exercises to anaerobics video A construction...
Question 11 (1 point) A film operating in a "Perfectly Competitive Market" has "No Market Power" which implies that the firm would lose all its customers if it attempted to increase price above the prevailing market price. faces a "vertical demand curve" for its output. does not have to decrease price in order to increase the quantity of output sold. More than one (perhaps all) of the above answers is correct. Bi e
Question 11 (1 point) Which of the following is correct regarding the market pricing method of price setting? A key consideration when doing market pricing is to determine what percent above cost the price will be. The market pricing method is often ineffective for new technology products where customers lack understanding of the product. Market pricing relies on evaluating what competitors are charging in the market in order to set price. Break-even pricing falls within the market pricing method.
Question 63 (1 point) Which of the following is an example of an external cost (or negative externality)?! The fall in the price of wheat because good weather produced a large crop O A company moves a factory to China, closing its Canadian factory. The fall in the price of gasoline because oil prices are falling, making Canadian oil industry workers jobless. Taxes are increased to pay for increased government spending during the pandemic. The increased chance of getting the...
Which of the following is correct regarding the limit pricing model? There is more than one answer to this question. You must mark all of the correct answers to receive full credit for this question. At the limit price and corresponding quantity, the residual demand is zero. The residual demand is how much is left over of the total market demand after accounting for the amount produced by the incumbent. The best that a new entrant can do when an...
Which of the following is correct regarding penetration pricing? There is more than one answer to this question. You must mark all of the answers to receive full credit for this question. It is a temporary pricing strategy intended to quickly attract consumers to a firm. It is a strategy that is commonly found among perfectly competitive firms. It is used by firms to overcome network effects of well- established firms. It is used by firms with a long history...
15. Causes of market failure include a. externalities and market power. (b) market power and incorrect forecasts of consumer demand. c. externalities and foreign competition. d. incorrect forecasts of consumer demand and foreign competition. 16. Which of these consumption activities will most likely impose an external cost? a. An executive plays a vigorous game of golf. b. A student in a dorm plays her CDs at 120 decibels late at night. A young mother exercises to anaerobics video A construction...
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