If the Consumption of Good Generates an External Benefit, Then

question 43

Multiple Choice

If the consumption of good generates an external benefit, then the market equilibrium quantity:

• A)will be socially optimal.
• B)will be less than the socially optimal quantity.
• C)will be greater than the socially optimal quantity.
• D)could be either less than or greater than the socially optimal quantity.

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Definitions:

Better Decisions

The outcome of a decision-making process that maximizes benefits or minimizes costs based on rational or informed choices.

Filtered

Processed or sifted through a system or tool to remove unwanted parts or to simplify.

Message

Refers to the content of communication, whether conveyed verbally, written, or through other mediums, intended to be received and understood by others.

Screens

In decision-making and information processing, screens are criteria or filters used to evaluate options or to screen out irrelevant data.