An External Cost in the Production of a Good Creates

question 100

Multiple Choice

An external cost in the production of a good creates a difference between the i. costs borne by the producer and the costs borne by society in general.
Ii. efficient quantity of output and the equilibrium quantity of output.
Iii. marginal social cost and the marginal private cost.

• A)i only
• B)iii only
• C)ii and iii
• D)i, ii, and iii
• E)i and iii

---

Definitions:

Voidable Instrument

A financial document or contract that is valid but may be annulled by one or more of the parties to the contract.

IOU Instrument

A document acknowledging a debt or an obligation to pay a specified sum of money to another party.

Payable On Demand

A financial agreement or instrument that requires payment when requested by the holder.

Unconditional Promise

A commitment made without any stipulations or requirements for its fulfillment.