If the Production of a Good Generates a Detrimental Externality

question 127

Multiple Choice

If the production of a good generates a detrimental externality, then at that level of production of the good under perfect competition,

• A)MSC > P.
• B)MPC > MSC.
• C)P > MU.
• D)MPC > P.

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Definitions:

Minimum Age

The legal age set by law that a person must reach to engage in certain activities or responsibilities, such as voting, drinking alcohol, or working.

Presidency

The office held by the president, who is the head of the executive branch in a republic or democratic nation.

Constitution

The fundamental principles and precedents established by which a state or other organization is governed.

Executive Agreements

International agreements entered into by the executive branch of the US government without Senate approval, unlike treaties.