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:

Causes of Death

The underlying medical conditions or external factors leading to an individual's death, categorized and analyzed in health statistics.

Statistics Canada

The national statistical office of Canada, responsible for producing statistics to help better understand the country, its population, resources, economy, society, and culture.

Mortality Data

Information and statistics on the incidence of death within a specified population.

Importance Gap

The discrepancy between the expected importance of an attribute or factor and its perceived performance, usually in the context of service or product evaluation.