Missing markets result from a. high transactions costs of such ...

[rosent76]

Missing markets result from
 a. high transactions costs of such markets.
  b. strict price controls.
  c. the inability of producers to gain economies of scale.
  d. foreign countries dominating a domestic market for a product.

Question 2

In a competitive market, an efficient allocation of resources is characterized by
 a. a price greater than the marginal cost of production.
  b. the possibility of further mutually beneficial transactions.
  c. the largest possible sum of consumer and producer surplus.
  d. a value of consumer surplus equal to that of producer surplus.

[asware1]

Answer to Question 1

a

Answer to Question 2

c