Marginal revenue product is obtained by multiplying the price of the product by the marginal resource cost

Which one of the following is a major difference between market and collective action through government?

a. Individuals are motivated by personal interests when making market choices, but they will be motivated primarily by the public interest when making collective choices. b. Competitive behavior is present when decisions are made in the marketplace, but competition is absent when choices are made collectively. c. Scarcity constrains output when decisions are made in the market sector, but scarcity is absent when goods are provided by the government. d. In the market sector, there is generally a one-to-one link between payment and consumption; this link is often absent in the government sector.

In the long run, under conditions of perfect competition, the buyer will eventually be able to buy the product at a

a. price equal to the lowest point on the ATC curve past the optimal scale of operation. b. price below cost. c. price equal to the lowest point on the ATC curve at the optimal scale of operation d. discount.