Author Question: The resource market is different from the product market because a. in the resource market, firms ... (Read 70 times)

NClaborn · **on:** Jun 30, 2018

The resource market is different from the product market because
a. in the resource market, firms don't maximize profit
b. in the resource market, households don't maximize utility
c. in the resource market, firms are demanders and households are suppliers
d. supply and demand do not apply in the resource market
e. supply and demand do not apply in the product market

Question 2

At the market output and price for a good whose production causes pollution,
a. pollution is eliminated
b. the marginal social cost of production exceeds the marginal social benefit of production
c. the private cost of production equals the private benefit of production
d. the marginal social benefit of production equals the marginal social cost of production
e. too little of the good is produced