Perfectly competitive markets will tend to under-allocate ...

[urbanoutfitters]

Perfectly competitive markets will tend to under-allocate resources to nonexclusive public goods because
 a. these goods are produced under conditions of increasing returns to scale.
 b. no single individual can appropriate the total benefits provided by the purchase of such goods.
  c. these goods are best produced under conditions of monopoly.
 d. no private producer can provide the capital necessary to produce such goods.

Question 2

Left to their own, private markets tend to
 a. under-allocate resources to public goods.
 b. allocate the economically efficient amount of resources to public goods.
  c. over-allocate resources to public goods.

[emilymalinowski12]

Answer to Question 1

b

Answer to Question 2

a

[urbanoutfitters]

Excellent

[olderstudent]

TYSM