Exhibit 6-1 Business cycle
In Exhibit 6-1, the recession phase of the business cycle can be represented by point(s):

In a monopolistically competitive market, the consumer receives the benefit of

A) production at minimum average cost. B) production where price equals marginal cost. C) product differentiation. D) allocative efficiency.

In perfect competition, environmental externalities need not distort the allocation of resources providing

a. transactions costs are zero. b. average costs are constant for all output levels. c. firms install pollution control equipment. d. the government sets realistic pollution standards.