If two restaurants sell many of the same food items but one offers a higher level of service, the service distinction is a form of _____.

Positive externalities are created when

A) other consumers reduce their demand for coffee and price thereby declines. B) farmers spray pesticide in their fields and it washes into the local river after the first rainstorm. C) your neighbor plants beautiful trees and flowers in her yard. D) you purchase the "Mona Lisa" and lock it in a vault.

The demand curve facing a perfectly competitive firm is

a. perfectly elastic b. perfectly inelastic c. unit elastic d. downward-sloping e. identical to the industry demand curve