For a Production Process That Involves a Positive Externality, It

question 104

Multiple Choice

For a production process that involves a positive externality, it is true that

• A) marginal social cost is more than marginal private cost.
• B) a per unit tax could be imposed on the producer to achieve the socially optimal level of production.
• C) a subsidy to producers could increase production to the socially optimal level.
• D) marginal social benefit is less than marginal private benefit.
• E) without government intervention the market will produce too much of this good.

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Definitions:

Antecedent States

These are the conditions or states of individuals (such as mood, emotions, or physical condition) that exist before encountering a marketing stimulus.

Sales Interactions

Exchanges between a salesperson and a customer that aim to address the customer's needs and result in a sale.

Orderly Fashion

A method or process that is organized and follows a systematically arranged sequence.

Natural Cycles

Regular and predictable patterns occurring in the natural environment, such as seasons, tides, and life cycles.