Which market is most likely to witness such actions and reactions as frequent new-product introductions, free samples, and aggressive advertising campaigns?

In the above figure, S1 represents the supply curve which includes private costs, and S2 is the supply curve which includes social costs

If the firm is producing a product that has external costs that the firm does have to pay, what will be the equilibrium price and quantity? A) P1, Q4 B) P2, Q3 C) P4, Q1 D) P3, Q2

If the Federal Reserve wishes to increase the money supply it should decrease the discount rate and/or decrease the required reserve ratio and/or buy government securities on the open market

a. True b. False Indicate whether the statement is true or false