One Consequence of a Negative Externality Is That

question 45

Multiple Choice

One consequence of a negative externality is that

• A)social costs are greater than private costs.
• B)private costs are greater than social costs.
• C)the marginal private cost curve slopes upward.
• D)the market output is less than the socially optimal output.
• E)a and c

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Definitions:

Temporary Use

The limited-time utilization of an asset or service for a specific period or purpose.

Personal Purpose

A motive or intention that serves an individual's own interests or desires, often distinct from business or professional objectives.

Goods Contract

A legally binding agreement concerning the sale, purchase, or lease of physical items or products.

Services Contract

An agreement between parties where one agrees to provide a specified service to the other in exchange for compensation.