If a Positive Externality Prevails in the Market for Smoke

question 38

Multiple Choice

If a positive externality prevails in the market for smoke detectors, then when the market is in equilibrium,

• A)the marginal social benefit of smoke detectors exceeds the marginal social cost.
• B)the marginal social cost of smoke detectors exceeds the marginal social benefit.
• C)the marginal social cost of smoke detectors is equal to the marginal social benefit.
• D)more than the efficient amount of smoke detectors is sold.

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Definitions:

Laughter

A physical manifestation of joy or amusement, often considered as a universal language across cultures.

Freud

Sigmund Freud, an Austrian neurologist and the founding father of psychoanalysis, a methodology for treating psychopathology through dialogue.

Procedural Definition

A description of a sequence of operations, actions, or steps needed to achieve a particular end in a specified manner.

Art

Creative expression through various mediums, such as painting, sculpture, music, and literature, intended to evoke an aesthetic response or convey a message.