Oftentimes, the Socially Optimal Quantity for a Product That Imposes

question 169

Multiple Choice

Oftentimes, the socially optimal quantity for a product that imposes external costs on the society is not zero, but something greater than zero. This is because completely eliminating the externality would involve

• A)a much greater marginal benefit than marginal cost.
• B)a much greater marginal cost than marginal benefit.
• C)having shortages in the market.
• D)having surpluses in the market.

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Definitions:

Eccrine Glands

Sweat glands that are found all over the human body, primarily involved in body temperature regulation through the secretion of sweat.

Forearm

The region of the upper limb between the elbow and the wrist, comprising the radius and ulna bones.

Forehead

The part of the face above the eyebrows and below the hairline.

Palm

The inner surface of the hand from the wrist to the base of the fingers, known for its sensitivity and flexibility.