If There Are Negative Externalities in Production or Consumption, Competitive

question 27

True/False

If there are negative externalities in production or consumption, competitive equilibrium is unlikely to be Pareto efficient but positive externalities enhance the efficiency of the market.

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Definitions:

Total Revenue

The total receipts from sales of goods or services provided by a company.

Perfectly Competitive Market

A market structure characterized by many buyers and sellers, all of whom have full information and the products are homogeneous, leading to no single buyer or seller being able to influence the market price.

Quantity Of Output

The total amount of goods or services produced by a company, sector, or economy during a specified period.

Marginal Revenue

The extra revenue earned by selling an additional unit of a product or service.