If a Product Provides a Positive Externality,a Duopoly

question 108

Multiple Choice

If a product provides a positive externality,a duopoly

• A) will provide more social welfare than a monopoly.
• B) will provide less social welfare than a monopoly.
• C) will provide the same social welfare as a monopoly.
• D) introduces an interesting and untested twist to the externality story.

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Definitions:

City Deterioration

Refers to the process where a part of the city falls into disrepair and decline, often characterized by abandoned buildings, decreased public services, and increased crime.

Maintenance Incentive

An encouragement or reward designed to prompt individuals or organizations to keep equipment or property in good condition.

Price Controls

Government-imposed limitations on the prices that can be charged for goods and services in a market, typically to curb inflation or ensure basic goods' affordability.

Opportunity Cost

The expense incurred by not choosing the next most favorable option when a decision is made or one possibility is selected over another.