Consider a Market Where Production of the Good Is Creating

question 94

Multiple Choice

Consider a market where production of the good is creating a negative externality.In the market equilibrium,there is a deadweight loss because the

• A) internal cost of production is less than the social cost.
• B) internal cost of production is not equal to the internal benefit.
• C) internal benefit is not equal to the external benefit.
• D) social cost is greater than the internal benefit.
• E) internal benefit is less than the internal cost.

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Definitions:

Nourishment

The substances necessary for growth, health, and good condition, usually obtained from food.

Fetus

A developing mammal or human from usually two months after conception to birth.

Human Organism

A living individual of the species Homo sapiens, composed of multiple organ systems.

Outer Cells

Cells located on the outermost layer of a structure or organism, often involved in protective or interface functions.