When There Is Market Failure Due to a Negative Externality

question 39

Multiple Choice

When there is market failure due to a negative externality:

• A)there are no way of correcting it.
• B)setting price equal to marginal social cost will solve it.
• C)the free market produces output at a too high price.
• D)externalities have been taken into account.
• E)the best solution eliminates the externality entirely.

---

Definitions:

Benign Tumors

Non-cancerous growths in the body that do not spread to other parts and usually have a slow growth rate.

Poly-A Tail

A stretch of adenine nucleotides added to the 3' end of a newly synthesized messenger RNA molecule, protecting the mRNA and aiding in its export from the nucleus.

Guanine Cap

A modified form of guanine nucleotide added to the 5' end of eukaryotic mRNA, playing a critical role in RNA stability and the initiation of translation.

Posttranscriptional Control

The regulation of gene expression at the RNA level, after the process of transcription, affecting mRNA splicing, transportation, stability, and translation efficiency.