An External Cost in the Production of a Good Creates

question 71

Multiple Choice

An external cost in the production of a good creates a difference between the
i.costs borne by the producer and the costs borne by society in general.
ii.efficient quantity of output and the equilibrium quantity of output.
iii.marginal social cost and the marginal private cost.

• A) i only
• B) iii only
• C) ii and iii
• D) i, ii, and iii
• E) i and iii

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Definitions:

Symbols

Characters or marks that are used to represent objects, quantities, or relations in mathematical expressions, equations, or in general notation.

Sample

A subset of individuals or observations selected from the population under study, intended to represent the population in statistical analyses.

Covariance

A measure of the joint variability of two random variables, indicating how the variables change together.

Positive Relation

A relationship between two variables where an increase in one variable is associated with an increase in the other variable.