If Production of a Good Creates External Benefits, a Competitive

question 45

Multiple Choice

If production of a good creates external benefits, a competitive market will likely produce

• A) less output than would maximize profit.
• B) more output than would maximize profit.
• C) less output than is efficient.
• D) more output than is efficient.

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Definitions:

Acetic Acid

A weak, organic acid that gives vinegar its characteristic smell and sour taste; used as a chemical reagent.

Lone Pairs

Electron pairs in the outer shell of an atom that are not involved in chemical bonding.

Orbital

An equation that represents the wave-like actions of one or two electrons in an atomic structure.

Electrons

Subatomic particles with a negative electric charge, found orbiting the nucleus of an atom, fundamentally involved in chemical bonds and reactions.