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35. What would be an example of an explicit cost of production? a. the cost of training programs postponed indefinitely b. the cost of forgone labour earnings for an entrepreneur c. the cost of the lost opportunity to invest in other capital markets when the money is invested in one’s businessd. the cost of flour for a baker 36. Suppose that Dallas has a change in his tastes such that he values strawberries more than before. If the market price is the same as before, then what would happen to Dallas? 37. What does a binding price ceiling cause? 38. When the government intervenes in markets with externalities, why does it do so?
10 Figure 5-3 39. Refer to Figure 5-3. Which price and quantity combination represents the social optimum? a. P2and Q1b. P1andQ0c. P3and Q0d. P0and Q140. Why do private markets fail to account for externalities?