If Production of a Good Creates Beneficial Externalities, a Perfectly

question 33

Multiple Choice

If production of a good creates beneficial externalities, a perfectly competitive market will produce

• A)less output than would maximize profit.
• B)more output than would maximize profit.
• C)less output than is socially efficient.
• D)more output than is socially efficient.

---

Definitions:

Aesthetics

The branch of philosophy concerned with the nature and appreciation of art, beauty, and taste.

A Priori Structures

Fundamental concepts or frameworks that are understood or known before any experience or empirical evidence is involved.

Kant

A German philosopher who is a central figure in modern philosophy, known for his critique of pure reason and moral philosophy.

Schopenhauer

A German philosopher best known for his work "The World as Will and Representation," emphasizing the role of will in nature and human suffering.