If the Market Supply Curve Does Not Capture All of the Costs

question 82

Multiple Choice

If the market supply curve does not capture all of the costs to society of producing an additional unit of good, then:

• A)the market equilibrium will be socially optimal.
• B)the market equilibrium will not be efficient.
• C)the allocation of resources will be efficient.
• D)the market will not be in equilibrium.

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Definitions:

Exclusive Distribution

A strategy where a product is distributed through a single wholesaler or retailer in a specific geographic area, limiting the number of outlets to maintain exclusivity.

Retailers

Businesses that sell products directly to consumers.

Product Mix

The complete set of all products offered by a firm.

Kellogg's

An American multinational food manufacturing company known for producing cereals and convenience foods.