Private Markets Fail to Reach a Socially Optimal Level When

question 31

Multiple Choice

Private markets fail to reach a socially optimal level when positive consumption externalities are present because:

• A)private benefit equals social benefit at the private market solution
• B)private costs exceed private benefits at the private market solution
• C)social value exceeds private value at the private market solution
• D)private costs exceed social benefit at the private market solution

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Definitions:

Collecting Information

The process of gathering data or evidence for analysis in research or assessment.

Specific Tools

Specialized instruments or software used for particular tasks or measurements.

Experimental Techniques

Methods and procedures used in scientific research to manipulate and observe variables to determine cause-and-effect relationships.

Sample

A subset of a population that is used for measurement and analysis, representing the larger group from which it is drawn.