Author Question: A third party is a person, or persons, who: a. consume goods produced from at least two ... (Read 23 times)

Ebrown · **on:** Jun 30, 2018

A third party is a person, or persons, who:
a. consume goods produced from at least two intermediate inputs.
b. avoids the transactions of the two principal parties.
c. takes risks to avoid externalities.
d. internalizes the costs of market failure.
e. is imposed upon by the activity of others.

Question 2

When there are positive externalities associated with the consumption of a good, we can expect the market:
a. demand curve to lie above the social demand curve.
b. demand curve to lie below the social demand curve.
c. supply curve to lie above the social supply curve.
d. supply curve to lie below the social supply curve.
e. demand curve to lie below the social supply curve.