ECON 2010 FINAL

In gain the to the this situation we can assume that

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Unformatted text preview: lution into the Big River. This leads to higher costs and disruption for fisherman on the lake, for which they are not compensated. In gain the to the this situation, we can assume that: A) the ideal amount of society's resources is being used to produce plastic. gainer is greater than the loss to the B) there is an external benefit to society from plastic production. C) too many of society's resources are being used to produce plastic. loser). If the gain to D) too few of society's resources are being used to produce plastic. the gainer is greater the individuals costs are lower than the society's costs than the loss to the 83. The presence of an external negative effect implies the market is failing. loser my wife can A) True difference between externality and external effect. pay me an amount B) False External effect- actions of one economic agent effect others in society externality- an external effect whose cost has not been internalized by the producer 84. The MRT (marginal rate of transformation) i...
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