If a good that generates negative externalities were priced to take these negative externalities into account, itsMultiple Choiceprice would decrease, and its output would increase.price would remain constant and output would increase.price would increase, and its output would decrease.price would increase but its output would remain constant.

If the social benefit of consuming a good or a service exceeds the private benefit,Group of answer choicesthe market achieves economic efficiency.a negative externality exists.a positive externality exists.the sum of consumer surplus and producer surplus is maximised.

Multiple Choice QuestionHow does a monopolist change the price of its product?Multiple choice question.By changing the input costs of the product it produces.By changing the quality of the product it produces.It is unable to change the price of its product.By changing the quantity of the product it produces.

Which statement is true?Multiple ChoiceThere is an inverse relationship between product price and quantity supplied.As product price decreases, producers are willing to put more of the good on the market for sale.To entice producers to offer more of a product on the market for sale, product price must rise.There is some price at which quantity supplied of a product is negative.

If the demand curve for a good is horizontal and the price is positive, then a leftward shift of the supply curve results inGroup of answer choicesa price of zero.an increase in price.a decrease in price.no change in price.

If in a market the last unit of output was sold at a price higher than marginal costGroup of answer choicesproducers are better off producing more.consumers are better off if less of the product is sold.social welfare is not maximised.the unit increased total profit.