When Production of a Good Results in an External Cost

question 56

Multiple Choice

When production of a good results in an external cost, the unregulated competitive market equilibrium is inefficient because

• A) MSC < MSB
• B) MSC = MC
• C) MSC = MSB
• D) MSC > MSB

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Definitions:

Work Place

The physical location where someone is employed or where work is done.

Research Productivity

The rate at which a researcher or group of researchers produces scientific outputs, typically measured by publications in scholarly journals.

Salary Increases

Adjustments made to an employee's pay rate to reflect changes in market conditions, reward performance, or acknowledge inflation.

Professional Journals

Scholarly publications that feature articles and studies relevant to a particular professional field or discipline.