If Production of a Good Creates Beneficial Externalities, a Perfectly

question 33

Multiple Choice

If production of a good creates beneficial externalities, a perfectly competitive market will produce

• A)less output than would maximize profit.
• B)more output than would maximize profit.
• C)less output than is socially efficient.
• D)more output than is socially efficient.

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Definitions:

Medicaid

A government-sponsored insurance program in the United States for individuals and families with low income and resources.

Net Worth

The difference between an entity's total assets and its total liabilities.

Retirees

Individuals who have left the workforce, often due to age, and receive some form of retirement benefits.

Standard Deviations

An assessment measure that determines the degree of deviation or scattering of data points around the average.