How might government correct this divergence
What divergences arise between equilibrium and an efficient output spillover benefits are present? How might government correct this divergence?
Expert
When spillover benefits are present, the equilibrium output will be smaller than the efficient output because the consumer is willing to pay a price equal to the consumer’s individual marginal benefit, but no more. Since social benefits exist in addition to the private benefit, the government must either aid the producer to encourage more output or engage in its own production of the item with the spillover benefits.
Over the long-run the speculators activities are tend to: (1) decrease the volatility of prices. (2) attract legal attention and result in imprisonment. (3) increase the level and volatility of prices both. (4) yield tremendous profits and raise costs
Which of the following are examples of public goods?
What is the most important source of revenue and the major type of expenditure at the Federal level?
Question: If a government pegs the value of its currency to another currency, the government must stand ready to i. _________________________ the "hard" currency to defend the pegged value of its own currency. ii.
“The legal form an enterprise assumes is dictated primarily by the financial requirements of its particular line of production.” Do you agree?
I have a problem in economics on current production possibilities frontier. Please help me in the following question. The combination of 70 units of clothing and 30 units of food are: (1) Completely employs the economy's capacity. (2) Would leave most
“The best of all probable worlds is one in that we adopt policies which maximize the happiness of the lots number of people” is a statement of the utilitarian philosophy attributed to: (w) Alfred Korzybski. (x) Hugo Grotius. (y) Xenophon.
Give a brief introduction of the term Control Factor?
Give a brief introduction of the term Cost of capital?
How can we calculate Price earnings ratio?
18,76,764
1942279 Asked
3,689
Active Tutors
1425323
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!