Suppose That Electricity Producers Create a Negative Externality Equal to $5

question 425

Multiple Choice

Suppose that electricity producers create a negative externality equal to $5 per unit.What is the relationship between the equilibrium quantity and the socially optimal quantity of electricity to be produced?

• A) They are equal.
• B) The equilibrium quantity is greater than the socially optimal quantity.
• C) The equilibrium quantity is less than the socially optimal quantity.
• D) There is not enough information to answer the question.

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Definitions:

Male Bias

A tendency to prefer, value, or highlight male perspectives, experiences, or interests, often leading to the marginalization of female voices.

Psychotherapy

A therapeutic treatment involving psychological techniques; intended to help a person change behavior and overcome problems in desired ways.

Applied Psychology

The use of psychological methods and findings of scientific psychology to solve practical problems of human and animal behavior and experience.

Practical Significance

The extent to which research findings have meaningful, applicable implications in the real world, beyond statistical significance.