When Marginal Private Benefit Is Equal to Marginal Private Cost

question 124

Multiple Choice

When marginal private benefit is equal to marginal private cost,

• A)the activity in question generates no negative externality.
• B)all negative externalities have been internalized.
• C)all positive externalities have been internalized.
• D)the socially optimal level of output is less than the market output.

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Definitions:

Conjugation

Conjugation is a form of genetic exchange between bacteria where DNA is transferred from one bacterium to another through direct contact.

Ribosomes

Cellular organelles that serve as the site of biological protein synthesis, translating messenger RNA into proteins.

Bacteriophage

Type of virus that infects bacteria.

Emerging Disease

An emerging disease is a disease that has appeared in a population for the first time, or that may have existed previously but is rapidly increasing in incidence or geographic range.