When Production Creates External Costs Greater Than External Benefits,a Market

question 42

Multiple Choice

When production creates external costs greater than external benefits,a market is:

• A) not producing the product without government intervention.
• B) producing a socially optimal quantity of the product.
• C) allocating too few resources to production of the product.
• D) allocating too many resources to production of the product.

---

Definitions:

Private Brand

A brand that is owned by a retailer or a wholesaler rather than the manufacturer of the product, also known as a store or own brand.

Individual Branding

A marketing strategy where each product in a portfolio is given its own unique identity and brand name.

Manufacturer

An entity engaged in the production of goods through the processing of raw materials or assembly of components, often on a large scale.

Local Language

The language or dialect spoken by the original or main population in a particular region or community.