Under What Condition Does a Negative Production Externality Occur

question 42

Multiple Choice

Under what condition does a negative production externality occur

• A)The equilibrium quantity of output is equal to the socially optimal quantity.
• B)The equilibrium quantity of output is greater than the socially optimal quantity.
• C)The cost to the consumer exceeds the cost to society.
• D)The cost to the producer exceeds the cost to society.

---

Definitions:

Unwrapped

Exposed or revealed by removing a covering.

Reccomendation

Advisory suggestions provided to guide decisions or propose certain actions.

Unifying

Bringing people or elements together to make or become united, coherent, or as one entity.

Committee

A group of people appointed for a specific function, typically consisting of members of a larger group.