If the Equilibrium Quantity Is Equal to the Socially Optimal

question 147

Multiple Choice

If the equilibrium quantity is equal to the socially optimal quantity, one can infer that:

• A)the supply curve for the activity is below the socially optimal supply curve.
• B)there is no externality associated with this good.
• C)there is a positive externality associated with this good.
• D)there is a negative externality associated with this good.