When Production of a Good Results in an External Cost,the

question 38

Multiple Choice

When production of a good results in an external cost,the unregulated competitive market equilibrium is inefficient because ________.

• A) MSC = MC
• B) MSC = MB
• C) MSC > MB
• D) MSC < MB
• E) MSC is undefined

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Definitions:

Trade Deficits

Trade Deficits occur when a country's imports of goods and services exceed its exports, indicating an outflow of domestic currency to foreign markets.

Economic Colony

A region or country controlled by a foreign power for the purpose of economic exploitation, often through trade and resource extraction.

Trade Balance

The difference in value between a country's imports and exports over a certain period, indicating the net exports of goods and services.

Trade Balance

The difference between a country's exports and imports of goods and services, indicating whether a country has a trade surplus or deficit.