A firm in a market economy must do all of the following to succeed except
A) organize the factors of production into a functioning, efficient unit.
B) be organized as a corporation.
C) produce the goods and services that consumers want at a lower cost than consumers themselves can produce.
D) have access to sufficient funds.
Question 2
The social cost of cutting trees for firewood in a government forest is
A) the increased likelihood of flooding as more trees are cut.
B) opportunity cost to the individual of cutting the wood.
C) the increased likelihood of flooding as more trees are cut plus the private cost of cutting the trees.
D) the marginal costs of cutting the last tree.
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