If a Good Has an External Cost, the

question 152

Multiple Choice

If a good has an external cost, the

• A) competitive market outcome is efficient.
• B) marginal private cost reflects the external cost.
• C) competitive market outcome is inefficient.
• D) marginal private benefit is equal to the marginal social cost.

---

Definitions:

Iodine Allergy

An adverse reaction to iodine, a chemical element that is commonly used in medical imaging and antiseptics.

Tumor Tissue

The mass of cells comprising a tumor, characterized by abnormal growth and division, which may be benign or malignant.

Endoscopy/Cystoscopy

A procedure where doctors use specialized instruments to view and operate on the internal organs and vessels of your body, specifically focusing on the bladder (in the case of cystoscopy).

Clean Catch Midstream

A urine collection method minimizing contamination, involving cleaning the genital area, then collecting urine midstream in a sterile container.