A Positive Externality Results from the Purchase of Smoke Detectors

question 37

Multiple Choice

A positive externality results from the purchase of smoke detectors.If smoke detectors are sold in a competitive market,

• A)the marginal social benefit of smoke detectors is less than the marginal private benefit received by any consumer.
• B)the marginal social benefit will exceed the marginal private benefit received by any consumer.
• C)in equilibrium the marginal social cost of smoke detectors will equal the marginal social benefit.
• D)in equilibrium the marginal social benefit of smoke detectors is zero.

---

Definitions:

Neglect

The failure to provide necessary care, assistance, or attention, leading to potential harm or deprivation in individuals dependent on such care.

First-borns

Individuals who are the first child born into their family, often attributed with certain personality traits or roles within the family.

Power and Authority

Refers to the right and capacity of a group or person to enforce decisions and command obedience.

Achievement

The process of achieving a goal or the accomplishment of an aim or purpose, reflecting an individual's success in reaching specific objectives.