Question 1
For production to be at the ________ level of output, marginal benefit must equal social cost.
◦ profit-maximizing
◦ loss-minimizing
◦ shut-down
◦ efficient
Question 2
Taxes on a producing firm's ________ are meant to force decision makers to consider the full costs of their actions.
◦ positive externalities
◦ marginal production
◦ spillovers
◦ total production