Betsy loves to garden,and her rose garden is enjoyed by everyone in her neighborhood.Because her consumption of rosebushes provides a positive externality to the community,the government should _____ because the market quantity of rosebushes is _____ than the socially optimal quantity.
A) provide a subsidy;greater B) impose a tax;lower C) provide a subsidy;lower D) impose a tax;greater
Free trade increases the number of producers of a product, which keeps prices closer to marginal cost. The more producers there are in a market, the more difficult it will be for firms to collude. Because collusion moves the market price and quantity away from socially optimal levels, free trade enhances social welfare.
AG
Answered
The amount shown for total expenses in the planning budget for March would have been closest to: