Refer to Scenario 10.2. What level of output maximizes total revenue?

When an asset enables people to transfer purchasing power into the future it serves the function of a ________

A) store of value B) unit of account C) means of deferred payment D) medium of exchange

Private solutions to the problem of externalities are most likely when

A) transactions costs are low and the number of bargaining parties is small. B) transactions costs are low and the monetary damages to third parties are high. C) government actively encourages these solutions. D) transactions costs are low and the number of bargaining parties is large.