Which of the Following Statements Is NOT True in the Presence

question 101

Multiple Choice

Which of the following statements is NOT true in the presence of externalities?

• A) Social marginal cost equals the sum of internal and external marginal costs.
• B) A competitive industry generally produces more than a monopoly.
• C) A competitive industry always produces more than the socially efficient level of output.
• D) A monopoly always produces more than the socially efficient level of output.