Suppose the Socially Optimal Output Is 134 Units of a Good

question 66

Multiple Choice

Suppose the socially optimal output is 134 units of a good and the market output is 95 units of the good. A possible reason the market produces "too little" is that

• A)marginal private benefits are less than marginal social benefits.
• B)marginal private benefits are greater than marginal private costs.
• C)marginal private benefits are greater than marginal social benefits.
• D)marginal private costs are greater than marginal private benefits.

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Definitions:

Focus Group

is a small, diverse group of people whose reactions are studied regarding a new product or idea through guided discussions.

Remote Monitoring

The use of technology to observe, track, and report on activities or conditions from a distance.

Ongoing Improvements

Continuous efforts to enhance a product, process, or system over time through incremental changes or innovations.

Maintainability

The ease with which a product or system can be maintained to correct defects or their causes, improve performance, or adapt to a changed environment.