If the Social Cost Is Greater Than the Private Cost

question 98

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) equal to the socially optimal level.
• B) less than the socially optimal level.
• C) greater 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:

Civil Litigation

The process of resolving private disputes through the court system, as opposed to criminal proceedings.

Company Parking Lot

A designated area where employees and visitors can park their vehicles while at a business premises.

Prejudicial Error

An error that affects the outcome of a case or legal proceeding, leading to an unfair advantage or disadvantage.

Employment Dispute

A disagreement between an employer and an employee or group of employees, often regarding working conditions, pay, or unfair dismissal.