Suppose the Production of a Good Results in Negative Externalities

question 109

Multiple Choice

Suppose the production of a good results in negative externalities. If all costs are taken into account, then

• A)output will be at a lower level than if all costs are not taken into account.
• B)output will be at a lower level than the socially optimal level.
• C)the marginal private cost curve will lie above and to the left of the marginal social cost curve.
• D)output will be at a higher level than if all costs are not taken into account.

---

Definitions:

Personal Motivation

The internal drive that inspires individuals to pursue goals, activities, or changes.

Knowledge Base

A collection of information or data on a particular subject or system, often used as a resource.

Baseball Statistics

Numerical records that measure the performance and achievements of baseball players and teams.

Automatization

The process by which skills become automatic through practice and repetition.