When the Production of a Good Has an External Cost

question 109

Multiple Choice

When the production of a good has an external cost, the

• A) marginal social cost curve lies below the marginal private cost curve.
• B) marginal social benefit curve lies above the marginal private benefit curve.
• C) equilibrium quantity in an unregulated, competitive market has a marginal social cost greater than the marginal social benefit.
• D) equilibrium quantity in an unregulated, competitive market has a marginal social cost less than the marginal social benefit.

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Definitions:

Popular Democrat

A member or supporter of the Democratic Party who is widely favored or well-liked by the general public or within the party.

Ideological Label

A term used to categorize political beliefs, parties, or individuals based on their fundamental values and principles.

Communitarian

A philosophical and social movement that emphasizes the importance of community in the functioning of political life, often prioritizing communal goals over individual ones.