Government Intervention in a Particular Industry Is Unnecessary If Each

question 17

Multiple Choice

Government intervention in a particular industry is unnecessary if each of the industry's firms is operating where

• A)there are no positive externalities.
• B)there are no negative externalities.
• C)price is equal to private marginal cost.
• D)marginal social benefit is equal to marginal social cost.
• E)the demand curve is perfectly elastic.

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Definitions:

Mean

The arithmetic average of a set of values or quantities, obtained by dividing the sum of all values by the number of values.

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A collection of health-related benefits, such as medical insurance and wellness programs, offered by an employer to its employees.

Manufacturing Company

An entity engaged in the production of goods using labor, machines, and materials.

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A type of polymer formed by the condensation reaction between monomers, releasing a small molecule such as water when they react.