If the Production of a Good Generates a Detrimental Externality

question 91

Multiple Choice

If the production of a good generates a detrimental externality, then at that level of production of the good under perfect competition,

• A) MU = MSC.
• B) P < MPC.
• C) MPC < MSC.
• D) MPC > MSC.

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Definitions:

Oligohydramnios

A condition in pregnancy characterized by a deficiency in amniotic fluid, which can lead to complications for the fetus.

Amniotic Fluid

The protective liquid contained within the amniotic sac that surrounds and cushions the fetus during pregnancy.

Polyhydramnios

An excessive accumulation of amniotic fluid in the amniotic sac during pregnancy, which can lead to various complications.

Preeclampsia

A medical condition during pregnancy marked by elevated blood pressure and evidence of harm to another body system, typically affecting the liver and kidneys.