What is the best example of the law of supply?

A firm in pure competition would shut down when:

a. price is less than average total cost b. price is less than average fixed cost c. price is less than marginal cost d. price is less than average variable cost

Because of the free rider problem

a. side payments are necessary in order to achieve an efficient outcome b. a needed side payment can shrink until it is not large enough to compensate losers and still leave gainers better off c. efficient outcomes can never be achieved d. the Coase Theory often applies to real-world situations e. externalities are less common than they would otherwise be