What is true along the demand curve for a resource?
a. Prices of other resources are assumed constant.
b. The marginal product of that resource remains constant.
c. Total cost of production is assumed constant.
d. The price of that particular resource is assumed constant.
e. The quantity of that particular resource is assumed constant.
Question 2
When competitive market equilibrium determines a level of output for which the marginal social cost exceeds the marginal social benefit, the private equilibrium results in
a. a positive externality
b. a Coase equilibrium
c. underproduction of the product
d. a market failure
e. external benefits
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