Oftentimes, the Socially Optimal Quantity for a Product That Imposes

question 169

Multiple Choice

Oftentimes, the socially optimal quantity for a product that imposes external costs on the society is not zero, but something greater than zero. This is because completely eliminating the externality would involve

• A)a much greater marginal benefit than marginal cost.
• B)a much greater marginal cost than marginal benefit.
• C)having shortages in the market.
• D)having surpluses in the market.

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Definitions:

Humanistic Therapies

A category of psychotherapies that emphasize self-exploration, self-expression, and personal growth, focusing on the client's subjective experience.

Behavior Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through reinforcement and conditioning.

Counterconditioning

A behavioral therapy technique used to replace an undesirable response to a stimulus with a desirable response.

Contingency Management

A behavior change technique that reinforces positive behaviors with rewards to increase the likelihood of their occurrence.