In the absence of property rights factories will dump waste into a waterway up

In the absence of property rights factories will dump

This preview shows page 3 - 5 out of 7 pages.

10) In the absence of property rights, factories will dump waste into a waterway up to the point where ________ equals ________. A) marginal social cost; marginal social benefit B) marginal social cost; marginal private cost C) marginal private cost; marginal private benefit D) marginal private cost; marginal social cost 0 5 10 15 20 25 30 0 1 2 3 4 5 6 7 8 9 10 Lumber Producers (1000's) Sustainable Production (100,000 tons) 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10 Lumber Producers (1000's) Dollars PMB SMB
Image of page 3
4 Quantity of steel (millions of tons per week) Marginal social benefit (dollars per ton) Marginal social cost (dollars per ton) 5 40 20 10 35 25 15 30 30 20 25 35 25 20 40 11) The table above shows information about the costs and benefits of a steel smelter that pollutes the air of a city. The market is efficient when the quantity of steel produced is ________ tons per week. 12) The table above shows information about the costs and benefits of a steel smelter that pollutes the air of a city. If the marginal external cost is $10 per ton at every quantity of steel produced, the equilibrium quantity when the steel industry is unregulated is ________ tons per week. 13) When producers agree to restrict output, raise the price, and increase profits, the agreement is called ________. 14) A monopolistically competitive firm has ________ power to set the price of its product because ________. A) no; there are no barriers to entry B) some; there are barriers to entry C) no; of product differentiation D) some; of product differentiation
Image of page 4
Image of page 5

You've reached the end of your free preview.

Want to read all 7 pages?

  • Fall '07
  • Helms
  • producer, Externality, Max Mathias

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes