When the Production of a Good Results in a Positive

question 475

Multiple Choice

When the production of a good results in a positive externality, the social value curve is

• A)below the demand curve, indicating that the total value to society is less than the private benefit.
• B)above the demand curve, indicating that the total value to society is greater than the private benefit.
• C)identical to the demand curve, indicating that the total cost to society is the equal to the private benefit.
• D)above the supply curve, indicating that the total cost to society exceeds the private cost.

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Definitions:

R-chart

A type of control chart used in statistical quality control to monitor the range of variability within a sample.

Control Limits

Predetermined boundaries in statistical process control that indicate the limits of variation acceptable for a process to be considered in control.

Control Limits

Statistical boundaries within a control chart that represent acceptable levels of variation in a process.

Permissible Variation

The acceptable range of deviation that a quality characteristic can exhibit without affecting the performance of a product or system.