Private contracts between parties with mutual interests

a. will reduce the well-being of society.
b. will lead to market outcomes in which the public interest is sacrificed for personal gain.
c. can solve some inefficiencies associated with positive externalities.
d. will create negative externalities.

c

Economics

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The loss associated with the fact that at the profit-maximizing quantity consumers value the goods more than it cost to produce them is called

A) deadweight loss. B) comparative loss. C) Lerner Loss. D) Consumer Value Loss.

Economics

Comparative advantage is illustrated by the slopes of production possibilities frontiers.

Answer the following statement true (T) or false (F)

Economics