Suppose the Production of a Good Results in Negative Externalities

question 121

Multiple Choice

Suppose the production of a good results in negative externalities. If all costs are taken into account, then

• A)output will occur at the socially optimal level.
• B)the price of the product will be higher than if all costs are not taken into account.
• C)more output will be produced than if all costs are not taken into account.
• D)a and b
• E)a, b, and c

---

Definitions:

Penicillin G Potassium

An antibiotic used to treat various infections caused by bacteria, administered intravenously or intramuscularly.

Reconstitution

The process of mixing a liquid (usually water) with a dry substance to return it to its original form, often used in pharmacy to prepare medications.

Drug Concentration

The amount of a drug in a given volume of plasma, indicating the intensity of the drug's effect.

Diluent

A liquid used to dilute a substance, making it less concentrated for easier administration or absorption.