An asset is anything of value owned by a person or firm

Profits can be maximized by equating MR = MC = Price

A) only in perfectly competitive markets. B) only in monopoly markets. C) only in discriminating monopoly markets. D) only with government price controls.

A perfectly competitive steel mill that produces large amounts of pollution (a negative externality) will, from a social point of view,

a. produce too little steel. b. produce the socially optimal quantity of steel. c. produce too much steel. d. produce too much steel only if it installs pollution control equipment.