The industry that most closely approximates the conditions of the oligopoly model is:

Which of the following must be present to reach a private solution to an externality problem?

A) The total number of people, creators of the problem and those affected, must be relatively large to justify negotiating a solution. B) The transactions costs to negotiate a solution must be relatively low. C) The government must approve the solution for it to be a legal solution. D) A majority of the parties affected by the externality must agree to a solution.

The marginal factor cost is the

A) additional revenue obtained from a one-unit change in labor input. B) additional revenue obtained from a one-unit change in output. C) change in output resulting from the addition of one more worker. D) cost of using an additional unit of an input.