A Positive Externality Results from the Purchase of Smoke Detectors

question 37

Multiple Choice

A positive externality results from the purchase of smoke detectors.If smoke detectors are sold in a competitive market,

• A)the marginal social benefit of smoke detectors is less than the marginal private benefit received by any consumer.
• B)the marginal social benefit will exceed the marginal private benefit received by any consumer.
• C)in equilibrium the marginal social cost of smoke detectors will equal the marginal social benefit.
• D)in equilibrium the marginal social benefit of smoke detectors is zero.

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Definitions:

Prevalence

The proportion of a population that is affected by a certain condition, disease, or characteristic at a specific time.

Battering

The act of subjecting someone to physical violence repeatedly, often used in the context of domestic abuse.

Heterosexual

A person who is sexually attracted to individuals of the opposite sex.

Abused

Being subjected to harmful, injurious, or offensive treatment, often consistently and over a period.