The difference between a firms' profit-maximizing quantity and the quantity that minimizes average cost is called excess capacity

Which of the following is a recommended strategy to increase productivity of the private sector?

a. A reduction in government subsidies to producers b. An increase in business taxes c. An increase in government investment in risky projects d. An increase in the money supply e. An increase in subsidy on goods and services

Pollution is caused by a market failure, in an industry in which there is

A) unemployment. B) an over-allocation of resources in production. C) excess demand. D) excessive cost borne by the firm.