Public goods are unlikely to be provided by the private sector because
A. the exclusion principle does not apply to public goods.
B. the production of the good creates negative externalities.
C. no one can be excluded from the consumption of the good.
D. the consumption of the good creates negative externalities.
Answer: C
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Organizing a successful firm in a market economy has become ________ over the last century
A) politically impossible B) less difficult C) legally impossible D) more difficult
Refer to Table 14-8. If the two firms collude, is there an incentive for either to cheat on the collusion agreement?
A) Yes, but only Brawny Juice is in a position to gain by cheating. B) Yes, but only Power Fuel is in a position to gain by cheating. C) Yes, either firm can gain if it, alone, cheats. D) No, neither firm can gain by cheating.