While moving along a production possibilities frontier, the amount of labor ________, the amount of capital ________, and the level of technology ________

Which of the following best describes the idea of excess capacity in monopolistic competition?

a. Firms produce more output than is socially desirable. b. The output produced by a typical firm is less than what would occur at the minimum point on its ATC curve. c. Due to product differentiation, firms choose output levels at which P > ATC. d. Firms keep some surplus output on hand in case there is a shift in demand for their product. e. The collective output of all firms in the market typically exceeds the quantity demanded.

In setting an obligatory control on a polluting industry, the government

a. places a tax on the pollution b. creates pollution permits which could be sold on the open market c. creates private property rights for air d. establishes a limit on the amount of pollution a producer is permitted to emit e. offers a subsidy to the polluting firm