When the Production of a Good Has an External Cost,the

question 93

Multiple Choice

When the production of a good has an external cost,the

• A)marginal social cost curve lies below the marginal private cost curve.
• B)marginal social benefit curve lies above the marginal private benefit curve.
• C)equilibrium quantity in an unregulated,competitive market has a marginal social cost greater than the marginal social benefit.
• D)equilibrium quantity in an unregulated,competitive market has a marginal social cost less than the marginal social benefit.
• E)good should not be produced.

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Definitions:

Societal Condition

The state or situation of society at a given time, including its cultural, economic, and social aspects and challenges.

Poverty

The state of being extremely poor, where individuals or families lack the financial resources for basic living needs.

Success

The achievement of a goal or the accomplishment of an objective, often associated with personal or professional fulfillment.

Protective Factors

Conditions or attributes in individuals, families, communities, or the larger society that mitigate or eliminate risk and promote healthy development and well-being.