Consider a Product That Generates Positive Externalities When It Is

question 46

Multiple Choice

Consider a product that generates positive externalities when it is consumed. In this case,

• A) firms will produce too little of this product unless they internalize the external benefits.
• B) at the market equilibrium, the price is too high to be allocatively efficient.
• C) the government could tax the production of this good to improve efficiency.
• D) at the market equilibrium, the output would be greater than the socially optimal amount.
• E) at market equilibrium, the marginal social benefit is less than the marginal cost of producing the last unit.

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Definitions:

Social Breakdown

Refers to the deterioration of the social fabric and structures, leading to a decline in societal norms and values, often resulting in chaos or disorder.

Sociological Definition

A precise explanation of a term or concept within the field of sociology, emphasizing its significance and usage in the study of society and social behaviors.

Deviant Behavior

Actions or behaviors that violate societal norms or expectations, often resulting in disapproval or sanctions.

Egoistic Suicide

The type of suicide that occurs when people feel totally detached from society.