graph to answer the question that follows. Which of the following can cause the relationship shown between MSC and MPC? A decrease in financial instability from unlawful investing An increase in investment to support educational funding A decrease in fish population caused by overfishing a lake A decrease in air pollution caused by a nuclear energy plant

Microeconomics A Contemporary Intro
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ISBN:9781285635101
Author:MCEACHERN
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Chapter3: Economic Decision Makers
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43. 
Use the graph to answer the question that follows.



Which of the following can cause the relationship shown between MSC and MPC?
A decrease in financial instability from unlawful investing
An increase in investment to support educational funding
A decrease in fish population caused by overfishing a lake
A decrease in air pollution caused by a nuclear energy plant
An increase in research and development funding of a product
44. 

A perfectly competitive market will not produce the socially optimal quantity in long-run equilibrium if 
there are external costs or benefits along with unclear property rights
there is no government intervention
the government institutes a lump-sum tax or lump-sum subsidy
the individual firms have achieved minimum efficient scale
there is perfectly symmetric information
MSC
S=MPC
D=MPB=MSB
Quantity
Price ($)
Transcribed Image Text:MSC S=MPC D=MPB=MSB Quantity Price ($)
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