If the True Social Marginal Cost of Producing a Product,including

question 52

Multiple Choice

If the true social marginal cost of producing a product,including the externality,is higher than the marginal cost to the producer alone,then which of the following must be true?

• A) The production of the product generates a positive externality.
• B) The production of the product is too small compared to the ideal amount.
• C) The price of the product is too high compared to what would be socially ideal.
• D) The production of the product generates a negative externality.

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Definitions:

Prenatal Malnutrition

Insufficient nutrient intake or absorption by the mother during pregnancy, adversely affecting fetal development.

Lifespan

The total length of time that an organism is expected to live or the study of the developmental processes that occur throughout an individual's life.

Birth

The process of coming into life or entering the world, typically referring to the moment when a baby is born.

Infancy

The period of childhood that begins at birth and lasts to about 18-24 months, characterized by rapid physical growth and cognitive development.