Price Is a Measure of What the Customer Must Exchange

question 82

True/False

Price is a measure of what the customer must exchange to obtain goods and services and is an indicator of value to the customer.

Understand the differences between regulation, taxation, and market-based solutions in managing externalities.

Recognize the importance of the optimal tax level and its impact on correcting market inefficiencies.

Understand the concept of externalities and how they affect social costs and benefits.

Calculate the social cost of producing goods in the presence of external costs.