If the Social Cost Is Greater Than the Private Cost

question 61

Multiple Choice

If the social cost is greater than the private cost in a particular market,the private equilibrium will be at a quantity:

• A)greater than the socially optimal level.
• B)equal to the socially optimal level.
• C)less than the socially optimal level.
• D)greater than or less than the socially optimum level,depending on the size of the external costs.

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Definitions:

Industry Output

The total production or quantity of goods and services produced within a specific industry over a given period.

Top Firms

The leading or most successful companies in a particular industry or sector based on criteria like revenue, innovation, market share, or profitability.

Monopolistic Industry

An industry dominated by a single firm that has control over the market prices and production.

Unique Product

A product that has distinct features or attributes making it different from others in the market.