When the Consumption of a Good Creates an External Benefit

question 21

Multiple Choice

When the consumption of a good creates an external benefit

• A) the marginal social cost curve lies below the marginal private cost curve.
• B) the marginal social benefit curve lies above the marginal private benefit curve.
• C) the quantity produced in an unregulated, competitive market is greater than the efficient quantity.
• D) an unregulated, competitive market will produce the efficient quantity of the good.

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Definitions:

Pastes Formula

The action of copying a formula from one location and inserting it into another within a spreadsheet or document.

Circular Reference

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AVERAGE Function

A spreadsheet function that calculates the mean of a range of numbers.

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