c . less than the efficient annual output of automobiles is produced .
d . it is not possible to make buyers of automobiles better off without harming sellers .
e . both ( a ) and ( d )
6 . Eggs are sold in a perfectly competitive market . No persons other than the buyers and sellers of eggs are affected in any way when eggs are traded in the market . Then it follows that :
a . the price of eggs equals the marginal social cost of eggs . b . the price of eggs equals the marginal social benefit of eggs . c . the price of eggs exceeds the marginal social benefit of eggs . d . both ( a ) and ( b )
7 . Diamonds are sold by a monopoly firm that maximizes profits . Then it follows that :
a . the marginal social benefit of diamonds exceeds its marginal social cost . b . the marginal social cost of diamonds excee