Autre Flashcards
1
Q
ex of traffic light
A
diff of percentage times costs of average human lift and if nb is bigger than the cost of a traffic lights, then you should install it
2
Q
how to find the dead-weight loss?
A
it always point towards P2
3
Q
in a graph, where is the producer surplus?
A
the bottom triangle below P2
4
Q
in a graph, where is the consumer surplus?
A
the upper triangle over P2
5
Q
In the short-run when are a firm’s fixed costs equal to 0?
A
fixed costs are always greater than 0
6
Q
What will a positive externality cause a private market to produce?
A
produce more than socially desirable
7
Q
When do constant returns to scale occurs
A
when long-run average total costs are constant as output increase
