Which of the Following Is True

question 217

Multiple Choice

Which of the following is true?
i.In an unregulated market with an external benefit,consumers don't take it into account and consume less than the efficient quantity.
ii.Marginal social cost equals marginal private cost minus marginal external cost.
iii.An unregulated market produces more than the efficient quantity of a good with an external cost.

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

---

Definitions:

Package Carrier

A company or service that specializes in the transportation and delivery of parcels and packages, operating within postal, commercial, or freight contexts.

Private Fleet

A company-owned or leased set of transport vehicles dedicated to moving the company’s goods, providing control over logistics operations.

Lead Time Demand

The total demand for a product or service during its lead time, which is the time between order placement and delivery.

Safety Inventory

Additional stock kept on hand to protect against variability in demand or supply, ensuring that demand can be met without stockouts.