Question 13: Which is the most likely reason the government would be the only producer of a public good?

1) The good does not benefit society

2)The free rider problem

3) Patented technology

4) Transparency between buyer and private seller

Question 14: If the production function of a firm shows diminishing marginal product, what is true of its marginal cost (MC) curve in the short run?

1) MC is 0.

2) MC is constant at all quantities.

3) MC decreases as quantity produced increases.

4) MC increases as quantity produced increases.

5) MC decreases at a constant rate.