In a market with positive externalities
A) the efficient level of production is less than what competition will obtain.
B) the efficient level of production is equal to what competition will obtain.
C) the efficient level of production is more than what competition will obtain.
D) there cannot be an efficient level of production.
C
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Should countries specialize in producing goods and services based on having a comparative advantage or an absolute advantage? Why?
What will be an ideal response?
When a country abandons a no-trade policy, adopts a free-trade policy, and becomes an importer of a particular good,
a. consumer surplus increases and total surplus increases in the market for that good. b. consumer surplus increases and total surplus decreases in the market for that good. c. consumer surplus decreases and total surplus increases in the market for that good. d. consumer surplus decreases and total surplus decreases in the market for that good.