If there are important spillover benefits from consumption of a ...

[newyorker26]

If there are important spillover benefits from consumption of a good,
 a. government should prohibit its production.
 b. taxes should be imposed on producers of the product.
 c. the market demand curve for the good understates the value of the product to society and resources are therefore underallocated to its production.
  d. the market demand curve for the good overstates the value of the product to society and resources are therefore overallocated to its production.

Question 2

Comparative advantage occurs when a person or a country can produce a good or service at a lower ____ than others.
 a. fixed cost
 b. variable cost
 c. opportunity cost
  d. total cost

[duke02]

Answer to Question 1

c

Answer to Question 2

c