Open-access resources tend to be

Open-access resources tend to be
 a. conserved
  b. taxed
  c. overused
  d. efficiently used
  e. used in an environmentally sound manner

QUESTION 2

Consensus becomes easier to achieve as the number of firms in a cartel grows
 a. True
  b. False

QUESTION 3

The common pool problem
 a. occurs whenever goods are not rivals in consumption
  b. is an example of adverse selection
  c. arises whenever property rights are well defined
  d. is usually caused by government intervention into private markets
  e. is one in which resources to which access is unrestricted will tend to be overused

QUESTION 4

To maximize cartel profit, the members must allocate output so that the marginal cost for the final unit produced by each firm is
 a. identical
  b. unequal
  c. negative
  d. equal to the firm's average total cost
  e. maximized

QUESTION 5

Marginal external cost equals marginal private cost minus marginal social cost.
 a. True
  b. False

QUESTION 6

If the leading canned soup company introduces dozens of new flavors in order to dominate shelf space, the company is most likely trying to create a barrier to entry by
 a. increasing the total investment needed to reach the minimum efficient size
  b. spending more on advertising than potential competitors can afford
  c. exploiting economies of scale
  d. crowding out the competition
  e. establishing an undifferentiated oligopoly