The Market Equilibrium Is Not Efficient When the Consumption of a Good

question 68

Multiple Choice

The market equilibrium is not efficient when the consumption of a good creates external costs, which cause social costs to be:

• A) less than the private cost.
• B) greater than the private cost.
• C) less than the total cost.
• D) greater than the total cost.

---

Definitions:

Canine Teeth

Pointed teeth located between the incisors and premolars of mammals, used for tearing food.

Tall Narrow Pelvis

A description of a pelvic shape that is elongated vertically with a narrower width, affecting childbirth mechanics.

Pelvis

The lower part of the torso in human and vertebrates, comprising hip bones surrounding and protecting organs in the abdominopelvic cavity.

Foramen Magnum

The large opening at the base of the skull through which the spinal cord passes to connect with the brain.