Which of the following is an example of an externality?

A) A consumer purchasing a laptop.

B) A factory polluting a river while producing goods.

C) A firm reducing its production costs.

D) A company earning profits from new technology.

The primary cause of market failure is:

A) Profit maximization by firms.

B) Government regulation.

C) The presence of externalities or public goods.

D) Consumer preferences.

When the marginal utility per dollar spent on two goods is equal, a consumer:

A) Is not maximizing total utility.

B) Should buy more of the cheaper good.

C) Is maximizing total utility.

D) Should buy more of the expensive good.

What happens to total revenue when demand is inelastic, and the price of a good increases?

A) Total revenue increases.

B) Total revenue decreases.

C) Total revenue remains unchanged.

D) Total revenue is maximized.