Suppose That Cookie Producers Create a Positive Externality Equal to $2

question 3

Multiple Choice

Suppose that cookie producers create a positive externality equal to $2 per dozen. What is the relationship between the equilibrium quantity and the socially optimal quantity of cookies to be produced?

• A)They are equal.
• B)The equilibrium quantity is greater than the socially optimal quantity.
• C)The equilibrium quantity is less than the socially optimal quantity.
• D)There is not enough information to answer the question.

---

Definitions:

African-Americans

An ethnic group in the United States with total or partial ancestry from any of the black racial groups of Africa, including descendants of enslaved Africans.

Abolitionist Movement

A social and political campaign aimed at ending slavery and the slave trade in the United States and elsewhere.

William Lloyd Garrison

A prominent American abolitionist, journalist, and social reformer known for founding the anti-slavery newspaper "The Liberator."

Racism

A system of prejudice and discrimination based on race, where societal beliefs and practices create unequal opportunities and treatment for racial groups.