One reason markets may fail to provide the optimal quantity of public goods is the problem of

If production displays increasing marginal returns, then

A) the firm must be adding new capital to keep boosting productivity. B) each new worker hired adds more to output than previous hires. C) total product reaches a maximum sooner than if production displayed decreasing returns. D) total product rises by a constant amount throughout.

Government mandated safety standards within firms

A) will always decrease efficiency. B) can increase efficiency by avoiding a prisoner's dilemma outcome. C) are unnecessary because of asymmetric information. D) will create unfair competition among firms.