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.

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Definitions:

Transductive Reasoning

A type of reasoning, especially noted in young children, where individuals make inferences from one specific event to another, often without understanding the underlying causal relationships.

Three Mountains Task

A cognitive development test used to assess a child’s ability to recognize different perspectives and viewpoints.

Perspective

A specific perspective or manner of looking at something; an outlook.

Egocentrism

In developmental psychology, it refers to the inability of children in the preoperational stage to see any point of view other than their own.