Which of the following constitutes an external cost of driving an automobile?

A firm sells a product in a purely competitive market. The marginal cost of the product at the current output of 1000 units is $2.50. The minimum possible average variable cost is $2.00. The market price of the product is $2.50. To maximize profit or minimize losses, the firm should:

A. shut down. B. produce more than 1000 units. C. continue producing 1000 units. D. produce less than 1000 units.

To shift a country's production possibility frontier outward, it is necessary to

What will be an ideal response?