Microeconomics

1.

What do externalities, oligopolies, and product market surpluses have in common? O Inefficiency or market failure Normal or zero economic profits Supernormal profits O Negative profits O CollusionA perfectly competitive market is in long-run equilibrium. It is allocationy efficient if O the government intervenes to correct for any possible undesirable outcomes the marginal social cost equals the marginal social benefit for the last unit produced the average total cost equals the marginal cost and marginal revenue there are low barriers to entry into the market O costs outside the market equal costs inside the marketMSC MPC Price ($) MSB = MPB 100 120 Quantity Which of the following government interventions could produce a socially efficient market outcome? O A price floor at $6 O A price ceiling at $4 O A $2 per-unit subsidy O A $2 per-unit tax O A 100-unit quota