A catering company is producing at a point where its marginal costs are $25 and its fixed costs are $5000 . At the current price of $10 it is producing 50 meals. If the demand goes up, such that they can now charge $20 per meal, how much should the firm now produce?

A rent ceiling is

A) fair, because it helps all renters. B) fair, because it insures that low-income families can rent apartments. C) fair, because it helps all landlords. D) unfair. E) fair, because it helps more renters than it harms.

In the model of public goods

A) government spending is pure waste B) private consumption and government spending are equal. C) consumers benefit from private goods and public goods. D) the government provides goods at no cost to the public.