When the Market for Product Y Includes a Positive Externality

question 1

Multiple Choice

When the market for product Y includes a positive externality,:

• A)marginal social cost exceeds marginal private cost.
• B)marginal private cost exceeds marginal social cost.
• C)marginal social benefit exceeds marginal private benefit.
• D)marginal private benefit exceeds marginal social benefit.

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Definitions:

Narcotic Use

The utilization of drugs that dull the senses, relieve pain, and can lead to dependence, often referred to in the context of substance abuse.

Herbal Teas

Beverages made from the infusion or decoction of herbs, spices, or other plant materials in hot water, often consumed for their therapeutic benefits.

Acculturation

The process of adopting the cultural traits or social patterns of another group, especially as a result of contact.

Dominant Culture

The cultural practices, values, and norms that are most prominent or widely observed within a particular society or organization.