Suppose the Production of a Good Results in Positive Externalities

question 61

Multiple Choice

Suppose the production of a good results in positive externalities. If output occurs at the intersection of the marginal social benefits curve and the supply curve, then

• A)output will be at a higher level than if all benefits were not taken into account.
• B)output will be at a lower level than the socially optimal level.
• C)the marginal private benefit curve will lie above and to the right of the marginal social benefit curve.
• D)there will be underproduction.
• E)all of the above

---

Definitions:

Unit Infections

Refers to infections acquired within a specific healthcare unit or ward, often indicating a localized outbreak of disease.

Recent Increase

A phrase used to describe a situation or phenomenon that has gained magnitude or intensity in the near past.

Chlorhexidine Mouthwash

An antiseptic oral rinse used to control plaque and prevent gingivitis.

Normal Saline

A sterile solution of sodium chloride in water, commonly used in medical procedures for irrigation, washing tissues, and as an intravenous drip.