In economics, ________ are limited but ________ are unlimited

If the social cost of producing a good or service exceeds the private cost

A) a positive externality exists. B) the sum of consumer surplus and producer surplus is maximized. C) the market achieves economic efficiency. D) a negative externality exists.

A possible advantage of a horizontal merger for the economy is that

A) the merging firms could avoid losses. B) the merged firm might reap economies of scale which could translate into lower prices. C) the degree of competition in the industry will be intensified. D) the government stands to collect more corporate income tax revenue.