If a Perfectly Competitive Industry Is Not Forced to Take

question 59

Multiple Choice

If a perfectly competitive industry is not forced to take account of a negative externality it creates, it will produce where

• A) the marginal cost of production equals the marginal private benefit.
• B) the marginal cost of production equals the marginal social benefit.
• C) the marginal social cost of production equals the marginal social benefit.
• D) price equals marginal social benefit.

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Definitions:

Cultural Standards

The values, beliefs, and behaviors that are considered acceptable and normal within a specific culture or community.

Self-Image

An individual's perception of themselves, including their attributes, abilities, and values.

Flow

The feeling of being completely absorbed in an activity that is appropriately challenging to one’s skills.

Anxiety

A feeling of worry, nervousness, or unease, typically about an imminent event or something with an uncertain outcome.