Question

1. A perfectly competitive firm will shut down when the price is just below the minimum point on the:

a. average fixed cost curve

b. marginal cost curve

c. average total cost curve

d. average variable cost curve

2. Consumption of a pure public good

a. increases the supply of the good

b. depletes the supply of the good for others

c. excludes others from consuming the good somewhat

d. denies the opportunity to consume the good to others

e. neither depletes the good nor excludes others from consuming it

3.The private market will not provide enough of a pure public good because of

a. negative externalities

b. special interest lobbies

c. free rider problem

d. obligatory controls over production methods

e. public choice not to produce the good

Answer 1

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