If Production of a Good Creates Negative Externalities,then the Market

question 5

Multiple Choice

If production of a good creates negative externalities,then the market

• A)will under produce it
• B)will over produce it
• C)must be perfectly competitive
• D)must be constrained by barriers to entry
• E)will produce the most efficient quantity

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Definitions:

Heroin Addiction

A chronic, relapsing disorder characterized by compulsive drug seeking, continued use despite harmful consequences, and long-lasting changes in the brain.

Methadone

A synthetic opioid used for pain management and as part of medication-assisted treatment for opioid use disorder.

Psychological Dependence

A form of dependence characterized by a perceived need to use a substance for emotional relief or to achieve altered states of consciousness.

Physical Dependence

A physiological state of adaptation to a specific psychoactive substance, characterized by the emergence of withdrawal symptoms when the substance is discontinued.