When Producers Are Hard to Monitor and Marginal Costs Differ

question 113

Multiple Choice

When producers are hard to monitor and marginal costs differ across producers, _______ are an effective method to achieve efficient use of a _______.

• A) individual transferable quotas; common resource
• B) individual transferable quotas; excludable good
• C) marginal private benefits; public good
• D) individual transferable quotas; public good

---

Definitions:

Teflon

A synthetic fluoropolymer of tetrafluoroethylene that has numerous applications, known for its non-reactivity and ability to withstand high temperatures.

Poly(methyl α-cyanoacrylate)

A type of cyanoacrylate polymer that is used as a powerful adhesive in various applications, known commonly as super glue.

Radical Addition

This refers to a chemical reaction wherein radicals (atoms, molecules, or ions with unpaired electrons) are added to other molecules, often leading to polymerization or other significant transformations.

Anionic Addition

A reaction where negatively charged ions (anions) add to compounds, often leading to the formation of new bonds and structures.