The Socially Optimal Level of Output of a Good with an Externality

question 187

Multiple Choice

The socially optimal level of output of a good with an externality occurs when

• A)the marginal private costs of production are equal to marginal private revenues
• B)the firm maximizes its profits
• C)the consumer maximizes his or her utility
• D)the marginal social cost of production equals the marginal social benefit of the good
• E)the firm is making a normal profit

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Definitions:

Constructors

Special methods in a class that are called when an object of that class is created, initializing the object.

Init Method

A function in object-oriented programming used to initialize newly created objects.

ImageIcon

A class in the Swing library of Java that encapsulates images used in applications, allowing for the manipulation and display of those images.

Horizontal Line

A straight line that runs from left to right parallel to the x-axis in a coordinate system.