Question

Typically a more Free market economist such as Milton Friedman would define an Externality as a consequence of ["a lack of well defined property rights", "well defined property rights", "too much government inaction", "too little government action"]       and as such would prescribe a policy of ["fines", "compensation", "checks"]           to those 3rd party individuals (The Coase Theorem)

Whereas typically a more mainstream economist such as Krugman would define an Externality as a consequence of ["too little property rights", "a lack of government intervention", "a lack of government inaction", "well defined property rights"]           and as such he would most likely prescribe a policy of ["less taxation and regulation", "assign property rights to a party", "taxation or regulation"]    It would be their beliefs that a tax can correct for a negative externality and a subsidy to producers can correct for a positive externality because the tax shifts the cost onto the firms producing the product. Therefore a tax would     ["reduce", "freeze", "increase", "abeit"]         output, and a subsidy ["reduce", "increase", "freeze", "allocate"]    output.

2.

the goal of a monopoly is to ["maximize revenues", "sell sell sell and produce", "minimize costs", "maximize profit"]       to do this the monopoly will produce where ["marginal revenue > Marginal costs", "Marginal revenue = marginal costs", "marginal revenue < margina costs"]      

3.

What sets ["oligopolies", "monopolies", "monopolistic competition", "perfect competition"]      apart from perfect competition, its closest of the given competition models, is the incentive to          ["sell themselves off", "advertise", "signal"]      via advertising as a way to ["underprice", "assimilate to", "differentiate themselves from", "equalize production with"]         their competition The best example of this would most likely be ["a distributer company", "A chain coffee store like Starbucks", "an apple farmer", "a dairy farm"]      

Answer 1

1.a. Lack of well defined property rights

b.Checks

This is because the economist is free market economists and belive in minimum government intervention.

c. Lack of government intervention

d. Taxation or Regulation

e. Reduce

f. Increase

2. Maximize Profits

Marginal Revenue = Marginal Cost

3. Monopolistic Competition

Signal

Differentitate Themselves From

A chain store like Starbucks