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Author Question: The reason externalities distort the allocation of resources is that a. too few goods are usually ... (Read 88 times)

tsand2

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The reason externalities distort the allocation of resources is that
 a. too few goods are usually produced.
  b. firms often go out of business because of the externality.
  c. a firm's private costs do not reflect the social cost of production.
  d. regulating externalities uses scarce resources.

Question 2

Each of the following factors might interfere with the efficiency of perfect competition except:
 a. increasing returns to scale.
  b. imperfect price information.
  c. externalities.
  d. diminishing returns to scale.



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chinwesucks

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Answer to Question 1

c

Answer to Question 2

d




tsand2

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Reply 2 on: Jul 1, 2018
:D TYSM


Kedrick2014

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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