Question: A positive externality arises in a situation where a third party, outside the transaction, A. fails to allocate resources efficiently. B. suffers from a market

A positive externality arises in a situation where a third party, outside the transaction, A. fails to allocate resources efficiently. B. suffers from a market transaction by others. C. benefits from a market transaction by others. D. pays a pollution tax to balance social costs.

10. Total revenue is $1,000; explicit measurable costs are $500. Accounting profit: A. is $1,000. B. is $500. C. is $200. D. cannot be determined from the figures given.

11. Demand is said to be elastic when the: A. percentage change in quantity demanded is less than the percentage change in price. B. percentage change in quantity demanded is greater than the percentage change in price. C. change in quantity demanded is less than the change in price. D. change in quantity demanded is greater than the change in price.

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