If there are 100 identical firms in a perfectly competitive industry, and the typical firm supplies 50 units of output at a price of $30, the industry output is 5,000 units at a price of $30.

When government action is justified based on the argument that everyone agrees to be coerced _____

a. we cannot be sure that everyone is in favor of the action b. the same justification is true of market exchange c. we can be sure that the current state of affair is Pareto efficient d. the private interest becomes the public interest

Trade restrictions tend to make domestic products

A) cheaper because they do not have to compete with foreign goods. B) cheaper because they do have to compete with foreign goods. C) more expensive because they have to compete with foreign goods. D) more expensive because they do not have to compete with foreign goods.