If the Socially Optimal Level of Output for an Industry

question 24

Multiple Choice

If the socially optimal level of output for an industry is greater than the equilibrium output for that industry,there are

• A) external diseconomies.
• B) external economies.
• C) both external economies and diseconomies simultaneously.
• D) external internalities of substance.
• E) both external internalities and internal externalities.

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Definitions:

Fencing

The sport of fighting with swords (epee, foil, or sabre) or the practice of enclosing an area with a barrier for protection or privacy.

Storage Lot

A designated outdoor or indoor space used for storing vehicles, equipment, or other goods.

Kilograms

A unit of mass in the metric system, equivalent to one thousand grams.

Grams

A metric unit of mass equal to one thousandth of a kilogram.