Market Failure Because of Negative Externality Results In

question 23

Multiple Choice

Market failure because of negative externality results in:

• A) marginal social cost equal to marginal private costs.
• B) marginal social cost less than marginal social benefits.
• C) marginal social cost equal to marginal social benefits.
• D) greater outputs and lower price than socially desirable.

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Definitions:

Myelin Sheath

A fatty layer that surrounds nerve fibers, providing insulation and increasing the speed of electrical transmission along the neuron.

Receptor

A protein on the surface of a cell or inside it that binds to specific molecules, triggering a specific effect in the cell, such as a response to hormones or neurotransmitters.

Neurotransmitters

Chemical substances that transmit signals across a synapse from one neuron to another neuron or muscle or glandular cell.

Nissl Bodies

Structures within the cytoplasm of neurons that are made up of rough endoplasmic reticulum and ribosomes, involved in protein synthesis.