In the Case of a Technology Spillover, Internalizing a Positive

question 194

Multiple Choice

In the case of a technology spillover, internalizing a positive externality will cause the supply curve of an industry to

• A)shift to the right.
• B)shift to the left.
• C)become more elastic.
• D)remain unchanged.

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Definitions:

Perfect Price-Discriminate

A theoretical pricing strategy where a seller charges each customer the maximum price they are willing to pay, leading to maximum profit without excess supply or demand.

Marginal Cost

The increase in expenses associated with the production of an extra good or service unit.

Price Discrimination

A pricing strategy where a firm sells the same product at different prices to different groups of consumers, based on their willingness to pay, without any differences in production cost.

College ID Cards

Identification cards issued by colleges or universities to students, faculty, and staff to access campus facilities and services.