When There Is a Negative Externality, the Private Cost of Production

question 116

Multiple Choice

When there is a negative externality, the private cost of production ________ the social cost of production.

• A) is greater than
• B) is equal to
• C) eliminates
• D) is less than

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Definitions:

Probability

The likelihood or chance of a specific event occurring, typically expressed as a number between 0 and 1.

Seat Belts

Protective mechanisms built into vehicles to shield passengers from injurious motion that might occur during an accident or abrupt halt.

Drivers

Individuals who operate vehicles, or factors that cause or influence a process or situation.

Poisson Distribution

A probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space.