1. Which one of the following is NOT a way to resolve externalities:

a. Coasean bargaining

b. Pigouvian taxes

c. Social preferences

d. Robinson Crusoe model

2. A firm in which type of market structure can charge the largest markup:

a. Perfect competition

b. Monopolistic competition

c. Oligopoly

d. Monopoly

3. Most firms would like to

a. Increase markup

b. Decrease markup

c. Keep markup stable

d. Depends on goals of firm

4. Traditional firms are better than worker cooperatives in terms of:

a. Employment stability

b. Productivity

c. Retaining profits (capital formation)

d. None of the above