The Difference Between Social Cost and Private Cost Is a Measure

question 449

Multiple Choice

The difference between social cost and private cost is a measure of the

• A)loss in profit to the seller as the result of a negative externality.
• B)cost of an externality.
• C)cost reduction when the negative externality is eliminated.
• D)cost incurred by the government when it intervenes in the market.

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Definitions:

Market Share

Market share is the portion of a market controlled by a particular company or product, often expressed as a percentage of total sales in that market.

Sherman Act

A foundational antitrust law in the United States that prohibits monopolistic practices and cartels, aiming to preserve fair competition.

Contracts

Legally binding agreements between two or more parties that create mutual obligations.

Sherman Act

The Sherman Act is a landmark federal statute in the field of U.S. antitrust law passed by Congress in 1890, which prohibits monopolistic business practices and promotes competition.