ANSWER

MULTIPLE CHOICE

1. ANS: B PTS: 1 DIF: 1 REF: 13-1

NAT: Analytic LOC: Costs of production TOP: Profit
MSC: Definitional
2. ANS: A PTS: 1 DIF: 2 REF: 13-1
NAT: Analytic LOC: Costs of production TOP: Implicit costs
MSC: Interpretive
3. ANS: C PTS: 1 DIF: 2 REF: 13-1
NAT: Analytic LOC: Costs of production TOP: Economic profit
MSC: Definitional
4. ANS: C PTS: 1 DIF: 2 REF: 13-1
NAT: Analytic LOC: Costs of production TOP: Implicit costs
MSC: Applicative
5. ANS: B PTS: 1 DIF: 2 REF: 13-1
NAT: Analytic LOC: Costs of production TOP: Explicit costs
MSC: Analytical
6. ANS: D PTS: 1 DIF: 3 REF: 13-1
NAT: Analytic LOC: Costs of production TOP: Economic profit
MSC: Analytical
7. ANS: C PTS: 1 DIF: 2 REF: 13-2
NAT: Analytic LOC: Costs of production TOP: Marginal product
MSC: Applicative
8. ANS: B PTS: 1 DIF: 2 REF: 13-3
NAT: Analytic LOC: Costs of production TOP: Average variable cost
MSC: Applicative
9. ANS: B PTS: 1 DIF: 1 REF: 13-3
NAT: Analytic LOC: Costs of production TOP: Fixed costs
MSC: Analytical
10. ANS: B PTS: 1 DIF: 2 REF: 13-3
NAT: Analytic LOC: Costs of production TOP: Average fixed cost
MSC: Applicative
11. ANS: D PTS: 1 DIF: 2 REF: 13-3
NAT: Analytic LOC: Costs of production TOP: Total cost
MSC: Applicative
12. ANS: D PTS: 1 DIF: 2 REF: 13-3
NAT: Analytic LOC: Costs of production TOP: Average fixed cost
MSC: Applicative
13. ANS: B PTS: 1 DIF: 2 REF: 13-3
NAT: Analytic LOC: Costs of production TOP: Marginal cost
MSC: Applicative
14. ANS: A PTS: 1 DIF: 3 REF: 13-3
NAT: Analytic LOC: Costs of production TOP: Average total cost
MSC: Analytical
15. ANS: A PTS: 1 DIF: 3 REF: 13-3
NAT: Analytic LOC: Costs of production TOP: Average total cost
MSC: Analytical

79
 16. ANS: A PTS: 1 DIF: 3 REF: 13-3
NAT: Analytic LOC: Costs of production
TOP: Cost curves | Average total cost | Marginal cost MSC: Analytical
17. ANS: B PTS: 1 DIF: 3 REF: 13-3
NAT: Analytic LOC: Costs of production TOP: Cost curves | Marginal cost
MSC: Analytical
18. ANS: C PTS: 1 DIF: 2 REF: 13-3
NAT: Analytic LOC: Costs of production
TOP: Marginal cost | Diminishing marginal product MSC: Interpretive
19. ANS: A PTS: 1 DIF: 2 REF: 13-4
NAT: Analytic LOC: Costs of production TOP: Average total cost
MSC: Analytical
20. ANS: C PTS: 1 DIF: 2 REF: 13-4
NAT: Analytic LOC: Costs of production TOP: Economies of scale
MSC: Interpretive

II. Correct the mistakes

1. Opportunity Explicit (which is only one part of the OC)

2. Sometimes Always

3. Input Output

4. Some more small unit One additional unit

5. Average variable cost Average total cost

6. Avc No. It only affects the FC

7. Accounting Economic

8. Total product Marginal product

80
 9. 400 800

10. Diseconomies of scale The law of diminishing returns

III.Problem
Problem 1:
a. The fixed cost is $300, because fixed cost equals total cost minus variable cost.

b.
Quantity Total Variable Marginal Cost Marginal Cost
Cost Cost (using total cost)
(using variable cost)

0 $300 $0 --- ---

1 350 50 $50 $50

2 390 90 40 40

3 420 120 30 30

4 450 150 30 30

5 490 190 40 40

6 540 240 50 50

Marginal cost equals the change in total cost for each additional unit of output. It is also
equal to the change in variable cost for each additional unit of output. This occurs
because total cost equals the sum of variable cost and fixed cost and fixed cost does not
change as the quantity changes. Thus, as quantity increases, the increase in total cost
equals the increase in variable cost.

Problem 2:

The following table illustrates average fixed cost (AFC), average variable cost (AVC), and
average total cost (ATC) for each quantity. The efficient scale is four houses per month,
because that minimizes average total cost.

81
 Quantity Variable Fixed Total Average Average Average
Cost Cost Cost Fixed Cost Variable Cost Total Cost

0 $0 $200 $200 --- --- ---

1 10 200 210 $200 $10 $210

2 20 200 220 100 10 110

3 40 200 240 66.7 13.3 80

4 80 200 280 50 20 70

5 160 200 360 40 32 72

6 320 200 520 33.3 53.3 86.7

7 640 200 840 28.6 91.4 120

Problem 3:
The lump-sum tax causes an increase in fixed cost. Therefore, as Figure 10 shows, only average
fixed cost and average total cost will be affected.

2
1

82
b. Refer to Figure 11. Average variable cost, average total cost, and marginal cost will all
be greater. Average fixed cost will be unaffected.

production function

83
Answer Section

MULTIPLE CHOICE

1. ANS: A PTS: 1 DIF: 1 REF: 14-1

NAT: Analytic LOC: Perfect competition TOP: Competitive markets
MSC: Interpretive
2. ANS: D PTS: 1 DIF: 1 REF: 14-1
NAT: Analytic LOC: Perfect competition
TOP: Marginal revenue | Average revenue MSC: Definitional
3. ANS: A PTS: 1 DIF: 2 REF: 14-1
NAT: Analytic LOC: Perfect competition
TOP: Marginal revenue | Average revenue MSC: Analytical
4. ANS: A PTS: 1 DIF: 2 REF: 14-1
NAT: Analytic LOC: Perfect competition TOP: Total revenue
MSC: Analytical
5. ANS: C PTS: 1 DIF: 2 REF: 14-1
NAT: Analytic LOC: Perfect competition TOP: Marginal revenue
MSC: Applicative
6. ANS: B PTS: 1 DIF: 2 REF: 14-2
NAT: Analytic LOC: Perfect competition TOP: Competitive firms
MSC: Analytical
7. ANS: D PTS: 1 DIF: 2 REF: 14-2
NAT: Analytic LOC: Perfect competition TOP: Competitive firms
MSC: Analytical
8. ANS: C PTS: 1 DIF: 2 REF: 14-2
NAT: Analytic LOC: Perfect competition TOP: Profit maximization
MSC: Applicative
9. ANS: D PTS: 1 DIF: 2 REF: 14-2
NAT: Analytic LOC: Perfect competition TOP: Profit maximization
MSC: Analytical
10. ANS: D PTS: 1 DIF: 2 REF: 14-2
NAT: Analytic LOC: Perfect competition TOP: Profit
MSC: Applicative
11. ANS: D PTS: 1 DIF: 2 REF: 14-2
NAT: Analytic LOC: Perfect competition TOP: Economic profit
MSC: Applicative
12. ANS: C PTS: 1 DIF: 3 REF: 14-2
NAT: Analytic LOC: Perfect competition TOP: Profit maximization
MSC: Applicative
13. ANS: D PTS: 1 DIF: 1 REF: 14-2
NAT: Analytic LOC: Perfect competition TOP: Profit maximization
MSC: Applicative
14. ANS: B PTS: 1 DIF: 2 REF: 14-2
NAT: Analytic LOC: Perfect competition TOP: Supply curve
MSC: Interpretive
15. ANS: D PTS: 1 DIF: 3 REF: 14-2
NAT: Analytic LOC: Perfect competition TOP: Total revenue
MSC: Analytical

92
 16. ANS: B PTS: 1 DIF: 2 REF: 14-2
NAT: Analytic LOC: Perfect competition TOP: Zero-profit condition
MSC: Analytical
17. ANS: B PTS: 1 DIF: 2 REF: 14-2
NAT: Analytic LOC: Perfect competition TOP: Shut down
MSC: Analytical
18. ANS: A PTS: 1 DIF: 2 REF: 14-2
NAT: Analytic LOC: Perfect competition TOP: Shut down
MSC: Interpretive
19. ANS: C PTS: 1 DIF: 2 REF: 14-2
NAT: Analytic LOC: Perfect competition TOP: Supply curve
MSC: Definitional
20. ANS: D PTS: 1 DIF: 1 REF: 14-3
NAT: Analytic LOC: Perfect competition TOP: Accounting profit
MSC: Interpretive
21. ANS: B PTS: 1 DIF: 2 REF: 14-3
NAT: Analytic LOC: Perfect competition TOP: Zero-profit condition
MSC: Applicative
22. ANS: C PTS: 1 DIF: 2 REF: 14-3
NAT: Analytic LOC: Perfect competition TOP: Long-run supply curve
MSC: Analytical

II. Correct the mistakes

1. Short-run → Long-run

2. Average total cost → Average variable cost

3. Similar but not identical → Identical

4. Higher than → Equal to

5. Enter → Exit

6. Makers → Takers

7. Reduce → Increase/Raise

8. Downward-sloping → Horizontal

9. Total cost → Marginal cost

10. Variable cost → Fixed

93
SHORT ANSWER

1. ANS:
The firm selects the level of output at which marginal revenue is equal to marginal cost. If MR > MC, profit
will increase if the firm increases Q. If MR < MC, profit will increase if the firm decreases Q.

PTS: 1 DIF: 2 REF: 14-2 NAT: Analytic

LOC: Perfect competition TOP: Profit maximization
MSC: Analytical
2 ANS:
$2,500; firms are likely to enter this market since existing firms are earning economic profits.

PTS: 1 DIF: 2 REF: 14-2 NAT: Analytic

LOC: Perfect competition TOP: Profit MSC: Analytical
3. ANS:
Because a normal rate of return on their investment is included as part of the opportunity cost of production.

PTS: 1 DIF: 2 REF: 14-3 NAT: Analytic

LOC: Perfect competition TOP: Economic profit
MSC: Interpretive

94
MIC Tutorial 9
Answer Section

MULTIPLE CHOICE

1. ANS: D PTS: 1 DIF: 1 REF: 15-1

NAT: Analytic LOC: Monopoly TOP: Barriers to entry
MSC: Interpretive

2. ANS: C PTS: 1 DIF: 2 REF: 15-1

NAT: Analytic LOC: Monopoly TOP: Barriers to entry
MSC: Interpretive

3. ANS: D PTS: 1 DIF: 1 REF: 15-1

NAT: Analytic LOC: Monopoly TOP: Natural monopoly
MSC: Definitional

4. ANS: A PTS: 1 DIF: 2 REF: 15-2

NAT: Analytic LOC: Monopoly TOP: Monopoly | Perfect competition
MSC: Interpretive

5. ANS: B PTS: 1 DIF: 3 REF: 15-2

NAT: Analytic LOC: Monopoly TOP: Marginal revenue | Average revenue
MSC: Interpretive

6. ANS: A PTS: 1 DIF: 3 REF: 15-2

NAT: Analytic LOC: Monopoly TOP: Marginal revenue
MSC: Analytical

7. ANS: C PTS: 1 DIF: 2 REF: 15-2

NAT: Analytic LOC: Monopoly TOP: Profit maximization
MSC: Interpretive

8. ANS: C PTS: 1 DIF: 2 REF: 15-2

NAT: Analytic LOC: Monopoly TOP: Profit maximization
MSC: Applicative

9. ANS: A PTS: 1 DIF: 1 REF: 15-2

NAT: Analytic LOC: Monopoly TOP: Profit MSC: Applicative

10. ANS: B PTS: 1 DIF: 2 REF: 15-2

103
 NAT: Analytic LOC: Monopoly TOP: Marginal revenue
MSC: Analytical

11. ANS: D PTS: 1 DIF: 1 REF: 15-3

NAT: Analytic LOC: Monopoly TOP: Profit maximization
MSC: Interpretive

12. ANS: D PTS: 1 DIF: 3 REF: 15-3

NAT: Analytic LOC: Monopoly TOP: Profit maximization
MSC: Applicative

13. ANS: C PTS: 1 DIF: 1 REF: 15-5

NAT: Analytic LOC: Monopoly TOP: Antitrust MSC: Definitional

14. ANS: B PTS: 1 DIF: 1 REF: 15-5

NAT: Analytic LOC: Monopoly TOP: Antitrust MSC: Definitional

15. ANS: C PTS: 1 DIF: 2 REF: 15-5

NAT: Analytic LOC: Monopoly TOP: Antitrust MSC: Interpretive

16. ANS: C PTS: 1 DIF: 2 REF: 15-4

NAT: Analytic LOC: Monopoly TOP: Consumer surplus
MSC: Applicative

17. ANS: A PTS: 1 DIF: 2 REF: 15-4

NAT: Analytic LOC: Monopoly TOP: Perfect price discrimination
MSC: Analytical

18. ANS: C PTS: 1 DIF: 2 REF: 15-4

NAT: Analytic LOC: Monopoly TOP: Price discrimination
MSC: Applicative

19. ANS: B PTS: 1 DIF: 3 REF: 15-4

NAT: Analytic LOC: Monopoly TOP: Deadweight loss
MSC: Applicative

20. ANS: B PTS: 1 DIF: 2 REF: 15-4

NAT: Analytic LOC: Monopoly TOP: Price discrimination
MSC: Applicative

II. Correct the mistakes

104
 1. With many → Without

2. Genuine monopoly → Natural monopoly

3. Horizontal → Downward-sloping

4. Output → Price

5. C → B

6. Price → Deadweight loss

7. Supply → Demand

8. Be positive → Equal zero

9. Below → Above

10. Price efficacy → Price discrimination

III. PROBLEM

Problem 1

ANS:

a. The following table shows total revenue and marginal revenue for each price and quantity
sold:

Total Marginal
Price Quantity Total Cost Profit
Revenue Revenue

$190,00
24 10,000 $240,000 ---- $50,000
0

105
 22 20,000 440,000 $20 100,000 340,000

20 30,000 600,000 16 150,000 450,000

18 40,000 720,000 12 200,000 520,000

16 50,000 800,000 8 250,000 550,000

14 60,000 840,000 4 300,000 540,000

b. Profits are maximized at a price of $16 and quantity of 50,000. At that point, profit is
$550,000.

c. As Johnny's agent, you should recommend that he demand $550,000 from them, so he
receives all of the profit (rather than the record company).

Problem 2

ANS:

Larry wants to sell as many drinks as possible without losing money, so he wants to set quantity
where price (demand) equals average total cost, which occurs at quantity QL and price PL in
Figure 6. Curly wants to bring in as much revenue as possible, which occurs where marginal
revenue equals zero, at quantity QC and price PC. Moe wants to maximize profits, which occurs
where marginal cost equals marginal revenue, at quantity QM and price PM.

106
Figure 6

Problem 3

ANS:

a. The marginal revenue from selling to each type of consumer is shown in the following
tables:

Price Quantity of Adult Total Revenue from Marginal Revenue from

Tickets Sale of Adult Tickets Sale of Adult Tickets
10 0 0 ----
9 100 900 9
8 200 1,600 7
7 300 2,100 5
6 300 1,800 -3
5 300 1,500 -3
4 300 1,200 -3
3 300 900 -3
2 300 600 -3
1 300 300 -3
0 300 0 -3

107
 Price Quantity of Child Total Revenue from Marginal Revenue from
Tickets Sale of Child Tickets Sale of Child Tickets
10 0 0 ----
9 0 0 0
8 0 0 0
7 0 0 0
6 0 0 0
5 100 500 5
4 200 800 3
3 200 600 -2
2 200 400 -2
1 200 200 -2
0 200 0 -2

To maximize profit, you should charge adults $7 and sell 300 tickets. You should charge
children $4 and sell 200 tickets. Total revenue will be $2,100 + $800 = $2,900. Because total
cost is $2,000, profit will be $900.

b. If price discrimination were not allowed, you would want to set a price of $7 for the tickets.
You would sell 300 tickets and profit would be $100.

c. The children who were willing to pay $4 but will not see the show now that the price is $7
will be worse off. The producer is worse off because profit is lower. Total surplus is lower.
There is no one that is better off.

d. In (a) total profit would be $400. In (b), there would be a $400 loss. There would be no
change in (c).

108
 Classify the following markets as perfectly competitive, monopolistic, or monopolistically
competitive, and explain your answers.
a. wooden no. 2 pencils
b. copper
c. local telephone service
d. peanut butter
e.lipstick
MIC Tut 9
Answer Section

MULTIPLE CHOICE

1. ANS: C PTS: 1 DIF: 1 REF: 16-2

NAT: Analytic LOC: Monopolistic competition
TOP: Monopolistic competition | Demand curve MSC: Definitional

2. ANS: D PTS: 1 DIF: 2 REF: 16-2

NAT: Analytic LOC: Monopolistic competition TOP: Profit maximization
MSC: Analytical

3. ANS: C PTS: 1 DIF: 2 REF: 16-2

NAT: Analytic LOC: Monopolistic competition TOP: Short-run equilibrium
MSC: Interpretive

4. ANS: C PTS: 1 DIF: 2 REF: 16-2

NAT: Analytic LOC: Monopolistic competition TOP: Long-run equilibrium
MSC: Applicative

5. ANS: A PTS: 1 DIF: 2 REF: 16-2

NAT: Analytic LOC: Monopolistic competition TOP: Monopolistic competition
MSC: Interpretive

6. ANS: D PTS: 1 DIF: 2 REF: 16-2

NAT: Analytic LOC: Monopolistic competition TOP: Monopolistic competition
MSC: Interpretive

7. ANS: B PTS: 1 DIF: 2 REF: 16-2

NAT: Analytic LOC: Monopolistic competition TOP: Excess capacity
113
 MSC: Interpretive

8. ANS: B PTS: 1 DIF: 2 REF: 16-3

NAT: Analytic LOC: Monopolistic competition TOP: Advertising
MSC: Interpretive

9. ANS: A PTS: 1 DIF: 2 REF: 16-3

NAT: Analytic LOC: Monopolistic competition TOP: Advertising
MSC: Interpretive

10. ANS: B PTS: 1 DIF: 2 REF: 16-3

NAT: Analytic LOC: Monopolistic competition TOP: Advertising
MSC: Interpretive

II.Correct the mistakes

1, equal to -> exceeds

2, identical -> not identical

3, only one -> a few

4, an upward-sloping demand -> a downward-sloping demand

5, decrease -> increase

6, are -> are not

7, no incentive -> incentive

8, exist -> not exist

9, doesn’t provide -> provide

10, but not -> and

III.PROBLEM

114
MULTIPLE CHOICE

1. ANS: D PTS: 1 DIF: 2 REF: 10-0

NAT: Analytic LOC: Markets, market failure, and externalities
TOP: Externalities MSC: Applicative
2. ANS: D PTS: 1 DIF: 1 REF: 10-0
NAT: Analytic LOC: Markets, market failure, and externalities
TOP: Positive externalities MSC: Definitional
3. ANS: B PTS: 1 DIF: 2 REF: 10-1
NAT: Analytic LOC: Markets, market failure, and externalities
TOP: Negative externalities MSC: Interpretive
4. ANS: C PTS: 1 DIF: 1 REF: 10-1
NAT: Analytic LOC: Markets, market failure, and externalities
TOP: Positive externalities MSC: Applicative
5. ANS: D PTS: 1 DIF: 1 REF: 10-1
NAT: Analytic LOC: Markets, market failure, and externalities
TOP: Technology spillovers MSC: Definitional
6. ANS: A PTS: 1 DIF: 2 REF: 10-1
NAT: Analytic LOC: Markets, market failure, and externalities
TOP: Externalities MSC: Applicative
7. ANS: D PTS: 1 DIF: 2 REF: 10-2
NAT: Analytic LOC: Markets, market failure, and externalities
TOP: Corrective taxes MSC: Analytical
8. ANS: D PTS: 1 DIF: 2 REF: 10-2
NAT: Analytic LOC: Markets, market failure, and externalities
TOP: Corrective taxes MSC: Interpretive
9. ANS: B PTS: 1 DIF: 2 REF: 10-2
NAT: Analytic LOC: Markets, market failure, and externalities
TOP: Corrective taxes MSC: Applicative
10. ANS: B PTS: 1 DIF: 3 REF: 10-3
NAT: Analytic LOC: Markets, market failure, and externalities
TOP: Coase theorem MSC: Analytical
11. ANS: B PTS: 1 DIF: 3 REF: 10-3
NAT: Analytic LOC: Markets, market failure, and externalities
TOP: Coase theorem MSC: Analytical
12. ANS: C PTS: 1 DIF: 2 REF: 11-0
NAT: Analytic LOC: Markets, market failure, and externalities
TOP: Market failure MSC: Interpretive
13. ANS: B PTS: 1 DIF: 2 REF: 11-1
NAT: Analytic LOC: Understanding and applying economic models
TOP: Rivalry in consumption MSC: Applicative
14. ANS: D PTS: 1 DIF: 1 REF: 11-1

121
 NAT: Analytic LOC: Understanding and applying economic models
TOP: Private goods MSC: Applicative
15. ANS: C PTS: 1 DIF: 2 REF: 11-1
NAT: Analytic LOC: The study of economics and definitions in economics
TOP: Private goods MSC: Applicative
16. ANS: D PTS: 1 DIF: 1 REF: 11-2
NAT: Analytic LOC: The study of economics and definitions in economics
TOP: Cost-benefit analysis MSC: Definitional
17. ANS: D PTS: 1 DIF: 2 REF: 11-3
NAT: Analytic LOC: Understanding and applying economic models
TOP: Common resources MSC: Applicative
18. ANS: A PTS: 1 DIF: 2 REF: 11-3
NAT: Analytic LOC: Understanding and applying economic models
TOP: Tragedy of the Commons MSC: Interpretive
19. ANS: D PTS: 1 DIF: 2 REF: 11-3
NAT: Analytic LOC: Markets, market failure, and externalities
TOP: Tragedy of the Commons MSC: Analytical
20. ANS: A PTS: 1 DIF: 2 REF: 11-3
NAT: Analytic LOC: Markets, market failure, and externalities
TOP: Common resources MSC: Applicative

122
 II.Correct the mistakes

1. Externality is the uncompensated impact of one person’s actions on the well-being of a

bystander
2. In the presence of a negative externality, such as pollution, the social cost of the good
exceeds the private cost
3. Positive externalities lead markets to produce a smaller quantity than is socially desirable
4. corrective tax is a tax designed to induce private decision makers to take account of the
social costs that arise from a negative externality
5. public goods are neither excludable nor rival in consumption
6. A good is excludable if it is possible to prevent someone from using it.
7. Common resources are rival in consumption but not excludable
8. governments provide public goods, making their decision about the quantity of each good
based on cost–benefit analysis.

III.SHORT ANSWER

1. ANS:

123
 When a positive externality exists, the private value (or demand curve) is less than the social value. The
market equilibrium quantity will be less than the socially optimal quantity. The government could help
eliminate this inefficiency by subsidizing the product. In this example, the size of the per-unit subsidy
would be P3 - P1.

PTS: 1 DIF: 2 REF: 10-1 NAT: Analytic

LOC: Markets, market failure, and externalities TOP: Positive externalities
MSC: Analytical

2. ANS:

Yes, these two quantities could be equal. For example, PB could be equal to the amount of the corrective
tax.

PTS: 1 DIF: 2 REF: 10-2 NAT: Analytic

LOC: Markets, market failure, and externalities
TOP: Corrective taxes | Tradable pollution permits MSC: Analytical

3. ANS:
One solution would be to have one person own both the farm fields and the beehives, in which case the
externality is internalized. Another solution would be to have the farmer and beekeeper enter into a
contract so that they can coordinate the number of bee hives and acres of crops to maintain an efficient
outcome.

PTS: 1 DIF: 1 REF: 10-3 NAT: Analytic

LOC: Markets, market failure, and externalities TOP: Externalities
MSC: Applicative

4. ANS:
Rival?
Yes No
124
 Private Goods Natural Monopolies
Ice-cream cones Fire protection
Yes
Clothing Cable TV
Congested toll roads Uncongested toll roads
Excludable?
Common Resources Public Goods
Fish in the ocean National defense
No
The environment Knowledge
Congested nontoll roads Uncongested nontoll roads

PTS: 1 DIF: 1 REF: 11-1 NAT: Analytic

LOC: The study of economics and definitions in economics
TOP: Excludability | Rivalry in consumption MSC: Applicative

5. ANS:
No one owns the wild salmon, while private individuals own goldfish. The profit motive leads to different
allocations of the resources. Salmon fishermen have an individual incentive to catch as many salmon as
possible before someone else does. Pet shop owners have a profit incentive to breed goldfish to sell to
consumers.

PTS: 1 DIF: 2 REF: 11-3 NAT: Analytic

LOC: Markets, market failure, and externalities TOP: Common resources
MSC: Interpretive

125