Refer to the figure below. In this case, the private market ________ resources efficiently because ________.
A. does not allocate; some of the costs of paper production do not fall on producers
B. does not allocate; demand and supply do not cross at the market equilibrium
C. allocates; consumers are willing to pay the external cost of production
D. allocates; firms are motivated to maximize profit
Answer: A
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For the period 1915 to 2005, educational improvements in the U.S. labor force contributed what percentage of real per-capita GDP growth?
A) 0.01 B) 15 C) 317 D) 34
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Firm A has been dealing in baby food products for the past 10 years and enjoys a good market share. Suppose a new firm enters the market to capitalize on the increasing demand for such products. However, the products of the new firm fail to attract customers. The failure of the new firm is due to
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