If a Good Is Produced Up to the Point Where

question 41

Multiple Choice

If a good is produced up to the point where marginal social benefit equals marginal social cost, then:

• A) social welfare is maximized.
• B) the good is overproduced and the market is inefficient.
• C) firms are earning zero profits.
• D) all externalities have been eliminated.

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Definitions:

Exclusiveness

The state or condition of being exclusive; limiting access or participation to a specific group or individual.

Enrich Relationships

Strengthening bonds and improving the quality and depth of personal connections.

Spark Passion

To ignite a strong and barely controllable emotion or enthusiasm in someone.

Positive Aspect

A feature or part of something that is advantageous, beneficial, or favorable.