If the raw materials are bulky and will entail huge transportation cost, where should the firm locate?*

A. near the customers of the final product

B. near the source of the raw materials

C. near the airports

D. near the maritime ports

Which of the following risks and uncertainties causes the heaviest damage to our agriculture?*

A. social and political changes

B. extreme weather events

C. unmanageable inflation

D. change in the exchange rates

E. energy price shocks

Which of the following statements is correct?*

A. there is an overproduction of goods and services with positive externalities

B. there is an underproduction of goods and services with negative externalities

C. if there are externalities, the market becomes more efficient in allocating the resources to its best uses

D. the market becomes more efficient if the market structure is oligopolistic

E. none