Suppose that the ABC industry produces a good that results in significant spillover costs to society. Such production suggests that:

A. at the market price, quantity demanded is less than quantity supplied.
B. the firms in this industry are not maximizing profits.
C. resources are overallocated to the industry.
D. resources are underallocated to the industry.


Answer: C

Economics

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Which of the following observations was made famous by Adam Smith in his book The Wealth of Nations?

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The demand curve for an individual seller's product in perfect competition is

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Economics