Divergences arise between equilibrium
What divergences arise between equilibrium and an efficient output when spillover costs? How might government correct this divergence?
Expert
When spillover costs are present, the equilibrium output will be greater than the efficient output. This is because the producer, who is not bearing the full cost of production, will be able to produce more at a lower price than the efficient level, which would exist if true costs were reflected in the production decision.
Economic Territory: This refers to the region of a country where there is a free movement of goods, capital and human resources.
Illustrations of activities which generate negative externalities would not comprise: (w) burning coal that results in acid rain. (x) smoking a cigar at the opera. (y) killing fish by dumping sewage into a river. (z) being inoculated against a contagi
How market system promotes technological improvements?
What does financial leverage specify? And also states its limitations?
Is Eiteman & Guthrie’s empirical evidence on the shape of the average total cost curve consistent along with heterodox cost theory? Discuss it out.
Describe briefly Distinction between the term Component cost and Composite cost?
Why are democratic regimes more conducive to economic growth than dictatorship
Define the term Mixed Economy and also state their advantages and disadvantages?
Briefly describe the term Cost of debt?
18,76,764
1957907 Asked
3,689
Active Tutors
1451970
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!