If Positive Externalities Are Present in a Free Market,________ at Any

question 35

Multiple Choice

If positive externalities are present in a free market,________ at any output level.

• A) the marginal cost of production equals the average cost of production
• B) the marginal social cost of production exceeds the marginal private cost
• C) the marginal private benefit from production equals the marginal social benefit
• D) the marginal social benefit of production exceeds the marginal private benefit

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Definitions:

Bank Checking Account

A bank account that allows for easy access to funds through checks, debit cards, and electronic transfers, used for managing daily transactions.

Internal Controls

Procedures and mechanisms established by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Safeguard Assets

Measures and procedures implemented by a company to protect its assets from theft, damage, or misuse.

Overstate Liabilities

Refers to the act of reporting liabilities on the financial statements at amounts higher than what is true or accurate.