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.Management Sciences
A. optimal quantity to exceed the equilibrium quantity.
B. equilibrium quantity to be either above or below the optimal quantity
C. equilibrium quantity to equal the optimal quantity
D. equilibrium quantity to exceed the optimal quantity
Related Mcqs:
- An externality is ?
- A. the benefit that accrues to the buyer in a market B. the cost that accrues to the seller in a market C. none of these answers D. the compensation paid to a firm’s external consultants. E. The uncompensated impact of one person’s actions on the well-being of a bystander...
- A positive externality generates ?
- A. a social cost curve that is above the supply curve (private cost curve) for a good B. none of these answers C. a social value curve that is above the demand curve (private value curve) for good D. a social value curve that is below the demand curve (private value curve) for a good...
- According to the Coase theorem, private parties can solve the problem of externalities if ?
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- Roberto and Thomas live in a university hall of residence. Reberto values playing loud music at a value of €100. Thomas values peace and quiet at a value of €150. Which of the following statements is true about an efficient solution to this externality problem if Roberto has the right to play loud music and if there are no transaction costs ?
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