When the Marginal Social Cost of the Production of Good

question 103

Multiple Choice

When the marginal social cost of the production of Good A is greater than the marginal private cost of the production of Good A,then

• A)a competitive,unregulated market produces less than the efficient quantity of Good A.
• B)a competitive,unregulated market produces the efficient quantity of Good A.
• C)a competitive,unregulated market produces more than the efficient quantity of Good A.
• D)the government should levy a tax on the production of Good A that is equal to the horizontal distance between the two marginal cost curves.
• E)a competitive,unregulated market does not create a deadweight loss.

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Definitions:

Resources

Assets, materials, or other items of value that are used or could be used to facilitate the achievement of desired goals.

Self-expression

The demonstration of one's personality, beliefs, or ideas through words, clothing, and other forms of personal expression.

Self-sufficiency

Self-sufficiency refers to the ability of an individual, community, or nation to meet its needs without external assistance.

Functional Products

Goods designed primarily for their utility and performance rather than their aesthetic qualities.