Which of the Following Statements Is Correct Under a Market

question 52

Multiple Choice

Which of the following statements is correct under a market with externalities?

• A) Social surplus is maximized as long as consumer surplus is maximized.
• B) Social surplus is maximized as long as producer surplus is maximized.
• C) Social surplus is maximized as long as both consumer surplus and producer surplus are maximized.
• D) None of these statements is correct.

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Definitions:

Victims

Individuals who have suffered harm, injury, or loss as a result of a crime, accident, or other event or action.

Privacy

The right of individuals to keep their personal information out of public view and to make choices about how their personal information is used.

Convulsion

An abrupt, involuntary muscle contraction often associated with a sudden electrical discharge in the brain, leading to uncontrolled body movements.

Brain Malfunctions

Disorders or dysfunctions in the brain leading to various symptoms like memory loss, impaired judgement, or physical impairments.