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:

General Practitioners

Medical doctors who provide primary and continuing care in the community, treating patients with a wide range of health issues.

Sanity

A legal term referring to an individual's ability to understand right from wrong and the nature of their actions at the time of a crime.

Involuntary Hospitalization

The process of admitting an individual to a psychiatric facility without their consent, typically when they are considered a danger to themselves or others.

Risk Of Harm

The likelihood or possibility that an individual will experience injury, damage, or another negative outcome.