Private markets will not provide the efficient quantity of a ...

[tnt_battle]

Private markets will not provide the efficient quantity of a public good because
 
  A) of the principle of minimum differentiation.
  B) public goods are rival and excludable.
  C) of rational ignorance.
  D) of the free-rider problem.

Question 2

The above figure shows the demand and cost curves for a firm in monopolistic competition. The firm maximizes its profit by
 
  A) producing 8 units at a price of 5 each.
  B) producing 8 units at a price of 15 each.
  C) producing 4 units at a price of 20 each.
  D) producing 12 units at a price of 10 each.

[matt]

Answer to Question 1

D

Answer to Question 2

B

[tnt_battle]

Thank you

[matt]

No problemo