When a Negative Externality Is Present in a Market,total Surplus

question 111

Multiple Choice

When a negative externality is present in a market,total surplus is:

• A)lower when buyers only consider private costs.
• B)higher when buyers only consider private costs.
• C)lower when buyers consider social costs.
• D)None of these statements is true.

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Definitions:

A Proposition

A statement that can either be true or false, expressed in a declarative form.

Distributed Terms

Terms in a categorical proposition that apply to all members of the category they describe, crucial in determining the validity of logical arguments.

Unstated Premise

An implicit assumption in an argument that is not directly expressed but is required for the argument to hold.

Weeds In Garden

Weeds In Garden denotes undesirable or unwanted plants growing among cultivated plants, often competing for nutrients and space.