Which of the Following Statements Is True

question 112

Multiple Choice

Which of the following statements is true?

• A)When production of a good yields positive externalities but output is currently at the market level, then a change in output to the socially optimal level will certainly be for the worse.
• B)When production of a good yields negative externalities but output is currently at the market level, then a change in output to the socially optimal level will cause benefits to increase by an amount greater than costs will increase.
• C)When production of a good yields positive externalities but output is currently at the market level, then a change in output to the socially optimal level will cause benefits to increase by an amount less than costs will increase.
• D)When production of a good yields positive externalities but output is currently at the market level, then a change in output to the socially optimal level will be a net change for the better.

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Definitions:

Cost-Plus Pricing

A sales tactic where the final selling price is set by adding a predetermined extra percentage to the cost of the product.

Market Share

The portion of a market controlled by a particular company or product, often expressed as a percentage.

Product's Image

The public perception or reputation of a product as shaped by branding, marketing, and customer experiences.

Price Cutting Campaign

A marketing strategy involving the reduction of prices of goods or services to attract more customers or drive sales volume.