If a Positive Externality Exists in a Market, the Marginal

question 213

Multiple Choice

If a positive externality exists in a market, the marginal

• A) private cost exceeds the marginal social cost.
• B) social cost exceeds the marginal private cost.
• C) private benefit exceeds the marginal social benefit.
• D) social benefit exceeds the marginal private benefit.

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Definitions:

Impulse Control

Impulse control refers to the ability to delay gratification and resist the temptation to perform an immediate action or decision that may not be beneficial in the long run.

Prolonged Drinking

Refers to the continuous or extended consumption of alcoholic beverages over a long period, which can lead to health issues and addiction.

Stomach Enzyme

Proteins found in the stomach that are crucial for the digestion of food, breaking down complex molecules like proteins into simpler forms.

Morphine Derivatives

Compounds chemically related to morphine, often used for their analgesic (pain-relieving) properties.