.Which of the following is true about rent control?

a.There will be a surplus of housing.

b.The equilibrium number of apartments will remain unchanged.

c.The price of rent controlled housing will rise.

d.The price of housing that is not price controlled will rise.

. In the case of a positive externality, the social marginal benefit will:

a.lay to the left of the market demand curve.

b.lay to the right of the market demand curve.

c.be the same as the market demand curve.

d. none of the above

To reach an economically efficient output level, the size of a tax imposed on a rm generating a negative externality should be:

a.thefirm's marginal cost.

b.the social marginal cost.

c.the sum of the social marginal cost and the firm's marginal cost.

d.the size of the externality.

Marginal costs sometimes fall when production first starts ramping up. Why?

a.Hiring more people allows for specialization.

b.Average fixed costs fall dramatically once production rises.

c.The Law of Diminishing Marginal product means productivity falls as more variable inputs are added.

d.Variable costs are zero when production is zero.