Which of the Following Describes How a Positive Externality Affects

question 132

Multiple Choice

Which of the following describes how a positive externality affects a competitive market?

• A)The externality causes a difference between the private benefit from consumption and the social benefit.
• B)The externality causes a difference between the private benefit from production and the social cost of production.
• C)The externality causes quantity demanded to exceed quantity supplied.
• D)The externality causes a difference between the social cost of production and the social cost of consumption.

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Definitions:

Diffusion

The process by which molecules move from an area of higher concentration to an area of lower concentration, contributing to the distribution of substances within a space.

Karyogenesis

The process of nucleus formation within a cell, which occurs during cell division.

Atom

The basic unit of a chemical element, consisting of a nucleus of protons and neutrons, and surrounded by electrons.

Element

is a substance that cannot be broken down into simpler substances by chemical means, consisting of atoms with the same number of protons.