AP Micro-Style Practice 3

A firm hires labor until MRP equals the wage. If the output price rises, the firm will:

A factory pollutes a river. The efficient Pigouvian tax equals:

Which is a pure public good?

The free-rider problem arises because public goods are:

If a worker's marginal product is 10 units and the product price is $5, the worker's MRP is:

A monopsonist's marginal factor cost is ___ the wage because ___.

Positive externalities lead to:

Tradable permits are preferred to uniform quotas when firms have:

A lighthouse is often cited as a public good, but modern GPS has made it:

A minimum wage in a competitive labor market set above equilibrium causes: