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.

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Definitions:

Neural Impulse

A signal transmitted along a nerve fiber, typically in response to a stimulus, leading to action or communication between different parts of the body.

Neurotransmitters

Chemical messengers that transmit signals across synapses from one neuron to another in the brain and nervous system.

Knoblike Terminals

The rounded ends of axons, known as axon terminals, which are involved in transmitting signals to other neurons or muscles through the synapse.

Axon

A narrow, lengthy protrusion from a nerve cell responsible for carrying electrical impulses outward from the neuron's main body.