Consider a Market Where Production of the Good Is Creating

question 94

Multiple Choice

Consider a market where production of the good is creating a negative externality.In the market equilibrium,there is a deadweight loss because the

• A) internal cost of production is less than the social cost.
• B) internal cost of production is not equal to the internal benefit.
• C) internal benefit is not equal to the external benefit.
• D) social cost is greater than the internal benefit.
• E) internal benefit is less than the internal cost.

---

Definitions:

Technical Expertise

Specialized knowledge or skills in a specific field or discipline, often relating to the application of scientific or technical knowledge.

Line Workers

Employees who are directly involved in the operational processes of a company, typically in manufacturing or production.

Planning

The process of making plans for something, including setting goals, strategies, and actions.

Controlling

is one of the four major functions of management, focusing on monitoring performance and making adjustments to achieve goals.