The free market assumes that:
A) Consumers are maximising utility and firms are maximising profitability.
B) Consumers are maximising their profitability and firms are minimising utility.
C) Consumers are minimising their utility and firms are minimising profitability.
D) None of the above.
Correct Answer:
Verified
Q2: Community surplus equals:
A) Producer surplus plus marginal
Q3: If there is a positive consumption externality,
Q4: The free rider problem occurs:
A) With monopolies
B)
Q5: A merit good:
A) Is one that is
Q6: A monopoly occurs when a firm dominates
Q7: With a negative production externality the amount
Q8: A demerit good:
A) Is one that is
Q9: An example of a demerit good is:
A)
Q11: The extra satisfaction consumers gain from consuming
Q12: At the socially optimal level of output:
A)
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