It is difficult for a private market to provide the economically efficient quantity of a public good because
A) by law governments cannot use cost-benefit analysis to determine this quantity.
B) it is too expensive to produce the necessary amount of the good.
C) individual preferences are not revealed in the market for the good.
D) public goods produce positive and negative externalities.
C
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A line graph that shows rising and falling profits over several years would have a(n)
a. A 90 degree slope b. downward slope c. varied slope d. almost level slope
Refer to the diagram, where variable inputs of labor are being added to a constant amount of property resources. The total output of this firm will cease to expand:
A. if a labor force in excess of Q 1 is employed.
B. if a labor force in excess of Q 2 is employed.
C. if a labor force in excess of Q 3 is employed.
D. only if the marginal product curve becomes negative at all levels of output.