Question 17 Not yet answered Marked out of 4 Which of the following conditions h

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Question 17 Not yet answered Marked out of 4 Which of the following conditions holds in an economically efficient competitive market equilibrium? Select one Oa. The deadweight loss is positive but at a minimum. Flag question b. Producer and consumer surplus are exactly equal in size. c. There are no positive and no negative external effects from consumption and production d. The marginal benefit of the last unit produced and consumed is maximized. Question 18 Not yet answered Marked out of 4 A product is considered to be nonexcludable if Select one a. you can keep those who did not pay for the item from enjoying its benefits Flag question b. you cannot keep those who did not pay for the item from enjoying its benefits. c. your consumption of the product reduces the quantity available for others to consume. d. it is jointly owned by all members of a community Question 19 What is a "social cost" of production? Not yet answered 4 Select one

Explanation / Answer

Q. 17

C. There are no positive or negative external effects. Answer.

. Choice A is wrong because there is no deadweight loss when the market is in equilibrium.

Choice D is wrong because P=MC.

Q 18.

B. You cannot keep others from enjoying the benefit ( non-excludable), For example, street light.

Choice C is non rivalry.

Public goods are both non-excludable and non-rivalrous.

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