If Negative Externalities Are Present in a Market,________

question 51

Multiple Choice

If negative externalities are present in a market,________.

• A) the market price is higher than the socially optimal price
• B) the quantity supplied in the market is larger than the socially optimal level
• C) the marginal social cost of production is lower than the marginal private cost
• D) the average cost of production exceeds the marginal cost of production at all output levels

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Definitions:

Disbursement Float

The time lag between a payment being made by a company and the actual withdrawal of funds from the company's account.

Deposited

Placing money into a financial account or institution for safekeeping or investment purposes.

Collection Float

The time period between when a check is deposited and when the funds are available in the payee’s account, reflecting the bank’s processing time.