When Production of a Good Results in an External Cost

question 5

Multiple Choice

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

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

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Definitions:

Abdominal

Relating to the abdomen, the part of the body between the chest and the pelvis.

Renal

Relates to the kidneys and their functions in the body.

Renal Medulla

The innermost part of the kidney that contains structures crucial for the concentration of urine.

Pyelonephritis

A type of urinary tract infection that has reached the kidney, potentially causing kidney damage.