This preview shows page 1. Sign up to view the full content.
Unformatted text preview: way to increase
D) Ingrid's indifference curves are flat (horizontal lines)
utility is to
45. Since texting while driving generates a negative external effect (it makes the roads less
safe for others), banning texting while driving would necessarily be efficiency
some negative external effects are no efficiency increasing when bannded
46. Assume there are 5 identical firms in a perfectly-competitive market, each with the
marginal cost curve MC=0.5Q. When the market price is 500, the total supply of this
five-firm economy will be___.
Marginal cost= market price
there are 5 firms so 5 x 1000
Version 1 Page 10 Use the following to answer questions 47-50: >20
look for the spot where the marginal benefit=margianl cost 47. (Table: Total Cost and Total Individual Benefit) The table shows the total cost and total
individual benefit of animal control for residents of a small town. If the 1000 residents
View Full Document
This document was uploaded on 02/18/2014 for the course ECON 2010 at Colorado.
- Fall '07