For-profit producers will produce only private goods because
A) buyers will be willing to pay for the goods since the benefits are excludable.
B) all external benefits can be internalized using market prices.
C) the cost of production can be easily determined.
D) markets exist for private goods but not for public goods.
A
You might also like to view...
Refer to Figure 2-2. The linear production possibilities frontier in the figure indicates that
A) it is progressively more expensive to produce meat. B) Mendonca has a comparative disadvantage in the production of meat. C) the tradeoff between meat and vegetables is constant. D) Mendonca has a comparative advantage in the production of vegetables.
Differences in what can explain the wage gap between U.S.-born and foreign-born workers?
(a) Culture (b) Schooling (c) Urbanization (d) All of the above