When the Production of a Good Has a Marginal External

question 73

Multiple Choice

When the production of a good has a marginal external cost,which of the following occurs in an unregulated market?
i.Overproduction relative to the efficient level will occur.
ii.The market price is less than the marginal social cost at the equilibrium quantity.
iii.A deadweight loss occurs.

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

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Definitions:

Kurtosis

A statistical measure that describes the shape of a distribution's tails in relation to a normal distribution.

Distribution

The way in which a set of values is spread or dispersed across a range, often visualized as a graph plotting the frequency of different outcomes.

Kurtosis

A statistical measure that describes the shape of a distribution's tails in comparison to a normal distribution.

Distribution

The way in which something is shared out among a group or spread over an area, often referring to the statistical spread of values in a dataset.