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Question: please explain carefully...

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nefficlen e) the area of production at the border between two entities, e.g. states or organaion 25. Should governments aim at decreasing the number of most serious crimes down to zero? a) No, because the market itself sets the number of serious crimes at an optimal level b) No, because this would be too costly Yes, because nobody wants to be a victim of such crime d) No, because criminals do not react to government policies anyway e) Yes, because a crime is an important example of negative extermalities 26. A publisher holding the exclusive right to distribute a given book operates under decreasing linear demand. To publish the book the publisher must bear a fixed cost of 10 000 zloty and a marginal cost of 12 zloty, where the latter includes the costs of printing which amount to 3 zloty. The publishers profits would be maximized with sales at the level of X copies. The ministry decided to cover the fixed costs requiring, however, that the publisher prints 1.5X copies. In such situation: a) the price will fall by exactly 3 zloty the price will not change c) the book will be offered at a lower price, not necessarily lower by 3 zloty d) the publishers profits will fall e) it may turn out that it is profitable for the publisher to print more than 1.5X copies

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