If Production of a Good Creates Beneficial Externalities, a Perfectly

question 33

Multiple Choice

If production of a good creates beneficial externalities, a perfectly competitive market will produce

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

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Definitions:

Clarification

A process of making something less confusing or more comprehensible by providing more details or explanation.

Industrial Diseases

Illnesses and conditions that are a direct result of work or occupational environment.

Harmful Chemicals

Substances that can cause damage or adverse effects to organisms upon exposure.

Asbestos

A group of naturally occurring fibrous minerals that are resistant to heat and corrosion, used in construction materials and textiles but can cause lung diseases when inhaled.