What Will Arise When Negative Externalities Are Present in a Market

question 169

Multiple Choice

What will arise when negative externalities are present in a market

• A)Private costs will be greater than social costs.
• B)Social costs will be greater than private costs.
• C)Government will regulate the externalities in the market..
• D)The market will not be able to reach any equilibrium situation.

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Definitions:

Reasonable Price

A cost that is fair and not too high, often considered in the context of what is normal or expected.

Fallacy

An incorrect reasoning that initially seems accurate.

Snob Appeal

A marketing or persuasion technique that targets people's desire for prestige or status, suggesting that using a product or service will elevate their social standing.

Ad Hominem

A fallacy in argumentation where the focus is on attacking the character of the person making an argument rather than addressing the argument itself.