In Order to Achieve a Socially Optimal Level of Output,production

question 35

Multiple Choice

In order to achieve a socially optimal level of output,production that generates positive externalities should be:

• A)required.
• B)subsidized.
• C)conducted by the government.
• D)deregulated.

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Definitions:

Economic Cost

The total cost of choosing one action over another, including both the explicit financial cost and the opportunity cost.

Hourly Wage

Compensation paid to employees based on the number of hours worked, typically expressed as an amount of money per hour.

Parking

The act of stopping and disengaging a vehicle and leaving it unoccupied.

Implicit Costs

Additional costs that do not appear on the financial statements of a company. These costs include items such as the opportunity cost of capital.