Question $45(2$ points$)$

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An externality is the impact of

Question $45$ options:

$1)$

society's decisions on the well$-$being of society.

$2)$

a person's actions on that person's well$-$being.

$3)$

one person's actions on the well$-$being of a bystander.

$4)$

society's decisions on the poorest person in the society.

Question $46(2$ points$)$

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The Wacky Widget company has total fixed costs of $$100,000$ per year. The firm's average variable cost is $$5$ for $10,000$ widgets. At that level of output, the firm's average total costs equal

Question $46$ options:

$1)$

$$10$

$2)$

$$15$

$3)$

$$100$

$4)$

$$150$

Question $47(2$ points$)$

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Suppose that electricity producers create a negative externality equal to $$5$ per unit. Further suppose that the government imposes a $$5$ per$-$unit tax on the producers. What is the relationship between the after$-$tax equilibrium quantity and the socially optimal quantity of electricity to be produced?

Question $47$ options:

$1)$

They are equal.

$2)$

The after$-$tax equilibrium quantity is greater than the socially optimal quantity.

$3)$

The after$-$tax equilibrium quantity is less than the socially optimal quantity.

$4)$

There is not enough information to answer the question.

Question $48(2$ points$)$

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A production function describes

Question $48$ options:

$1)$

how a firm maximizes profits.

$2)$

how a firm turns inputs into output.

$3)$

the minimal cost of producing a given level of output.

$4)$

the relationship between cost and output.

Question $49(2$ points$)$

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Public schools, parks, libraries, and roads are paid for largely through tax revenue because

Question $49$ options:

$1)$

society finds them so valuable that citizens are happy to pay for their full cost.

$2)$

these goods create a free$-$rider problem.

$3)$

if they were funded privately, too many of these goods would be produced.

$4)$

All of the above are correct.

Question $50(2$ points$)$

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If a production function shows declining marginal product of an input as the quantity of the input increases, then the production function exhibits

Question $50$ options:

$1)$

diminishing profitability.

$2)$

increasing returns to scale.

$3)$

increasing marginal product.

$4)$

decreasing marginal product.