It is assumed in standard economic theory that a firm makes decisions in an effort to

Cynthia is an Oklahoma wheat farmer. The demand for her wheat is

A) perfectly inelastic. B) inelastic but not perfectly inelastic. C) elastic but not perfectly elastic. D) perfectly elastic. E) unit elastic.

When the production of a good has a marginal external cost, which of the following occurs in an unregulated market?

i. Overproduction relative to the efficient level will occur. ii. The market price is less than the marginal social cost at the equilibrium quantity. iii. A deadweight loss occurs. A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii