When the Market for Product Y Includes a Positive Externality

question 1

Multiple Choice

When the market for product Y includes a positive externality,:

• A)marginal social cost exceeds marginal private cost.
• B)marginal private cost exceeds marginal social cost.
• C)marginal social benefit exceeds marginal private benefit.
• D)marginal private benefit exceeds marginal social benefit.

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Definitions:

Phloem

The vascular tissue in plants responsible for the transport of nutrients, especially sucrose, from the leaves to other parts of the plant.

Parenchyma Cells

Fundamental plant tissue composed of thin-walled living cells that function in photosynthesis, storage, and as the tissue repair and regeneration mechanism.

Secondary Growth

Growth that results in an increase in girth or thickness of plants, particularly in woody plants.

Primary Xylem

The portion of the xylem that is formed during the primary growth of plants, responsible for the transport of water and nutrients from the roots.