Externalities can occur as a result of either production or consumption activities

If a price support is maintained above the equilibrium price, the result will be a

A. Surplus of the product. B. Market price equal to the equilibrium price. C. Shortage of the product. D. Market price that is too low.

The concept of _________________ means that as the measure of output goes up, average costs of production decline-at least up to a point.

a. relative advantage b. economies of scale c. absolute advantage d. comparative advantage