If the Marginal Social Cost of Producing a Good Exceeds

question 105

Multiple Choice

If the marginal social cost of producing a good exceeds the marginal private cost,then _____

• A)the quantity of the good being produced is too less.
• B)the price charged for the good is too high.
• C)the good produces a positive externality.
• D)the good produces a negative externality.
• E)social welfare is likely to increase by producing more of the good.

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Definitions:

Business Models

Conceptual structures that represent how a company creates, delivers, and captures value, in economic, social, cultural, or other contexts.

Renewable Energy Sources

Energy sources that can be replenished and are considered environmentally friendly, such as solar, wind, hydroelectric, and geothermal power.

Resource-Constraint Problems

Challenges faced due to the limited availability of resources necessary to complete tasks or projects.

Sustainable Innovation

Innovation focused on creating new products or processes that meet current needs without compromising the ability of future generations to meet their needs.