Question 1
From society's viewpoint, a monopolist produces ________ because price is ________ marginal cost.
◦ too little; less than
◦ too much; less than
◦ too much; greater than
◦ too little; greater than
Question 2
A bill pending before the Legislature in the tiny island nation of WooHoo would prohibit private companies from selling canoe insurance and make the state the single payer of claims for canoe accidents. Private insurance companies that have made above normal profits have spent large sums of money trying to prevent the legislature from passing this bill into law. This is an example of
◦ government failure.
◦ collusion.
◦ an externality.
◦ rent-seeking behavior.
Bill Gates
The 2012 U.S. elections were some of the angriest the nation had seen. The count
Christmas Island Red Crabs
Bill Viola, The Reflecting Pool.