When Competitive Market Equilibrium Determines a Level of Output for Which

question 1

Multiple Choice

When competitive market equilibrium determines a level of output for which the marginal social cost exceeds the marginal social benefit, the private equilibrium results in

• A)a positive externality
• B)a Coase equilibrium
• C)underproduction of the product
• D)a market failure
• E)external benefits

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Definitions:

Creditworthiness

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An increase in the value of the Canadian dollar relative to another currency.

Foreign Currency

Currency used in a country other than one's own, involved in international trade and investment.

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