For a Production Process That Involves a Positive Externality,it Is

question 2

Multiple Choice

For a production process that involves a positive externality,it is true that

• A)a per unit tax could be imposed on the producer to achieve the socially optimal level of production.
• B)marginal social benefit is less than marginal private benefit.
• C)marginal social cost is more than marginal private cost.
• D)without government intervention the market will produce too much of this good.
• E)a subsidy to producers could increase production to the socially optimal level.

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Definitions:

Prototype

An original model or first form of something from which other forms are copied or developed, often used in the context of design and innovation.

Heuristic

A problem-solving strategy using a practical method or various shortcuts to produce solutions that may not be optimal but are sufficient for reaching immediate goals.

Prototype

An original model or preliminary version of a product from which other forms are developed or copied.

Algorithm

A process or set of rules to be followed in calculations or other problem-solving operations, especially by a computer.