1. Choose the most accurate statement and explain why it is accurate. Also explain why you did not choose the other statements. Keep your answer under page.

The most accurate statement is .

a. Perfect Competition is the least efficient type of market structure.

b. Public goods create a parabolic-Otto effect which ultimately leads to an increase in the Zamzow Syndrome (but not on Wednesdays if it is raining).

c. A Nash equilibrium only can occur when all players in a game have a dominant strategy.

d. Economic Surplus refers to an abundance of a good or resource.

e. The best solution to a negative externality is one which has the source completely internalize the negative externality.