Suppose the Production of a Good Results in Negative Externalities

question 121

Multiple Choice

Suppose the production of a good results in negative externalities. If all costs are taken into account, then

• A)output will occur at the socially optimal level.
• B)the price of the product will be higher than if all costs are not taken into account.
• C)more output will be produced than if all costs are not taken into account.
• D)a and b
• E)a, b, and c

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Definitions:

FR Schedule

Fixed Ratio Schedule, a type of reinforcement schedule used in behavioral psychology where a response is reinforced only after a specified number of responses have occurred.

Reinforcement Given

The delivery of a stimulus following a behavior that increases the likelihood of that behavior being repeated.

Fixed Time Interval

In operant conditioning, a reinforcement schedule where a response is rewarded only after a specified amount of time has elapsed.

Variable Time Interval

A schedule in operant conditioning where reinforcement is provided after varying intervals of time.