A Firm Is Generating Detrimental Externalities When

question 160

Multiple Choice

A firm is generating detrimental externalities when

• A)MSC is less than MPC.
• B)MSC is the same as MPC.
• C)MSC is greater than MPC.
• D)MPC includes some incidental costs.

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Definitions:

Mortality Rates

The measure of the number of deaths (in general, or due to a specific cause) in a particular population, scaled to the size of that population, per unit of time.

Illiteracy Rates

The percentage of the population that cannot read and write in a given language at a functional level.

Energy Consumption

The amount of energy consumed in the form of electricity, gas, or other energy sources by a household, business, or country.

Per Capita

A statistical measure that divides an aggregate by the number of individuals in the population.