In Private Equilibrium,a Positive Production Externality Will Lead to __________;

question 30

Multiple Choice

In private equilibrium,a positive production externality will lead to __________; a negative consumption externality will lead to ___________.

• A) SMC less than PMC; SMC greater than PMC
• B) SMC less than PMC; SMC less than PMC
• C) SMB less than PMB; SMC greater than PMC
• D) SMC less than PMC; SMB less than PMB

---

Definitions:

Expenses

Monetary outlays or expenditures that individuals, businesses, or other entities incur during their operations, which may include costs related to goods, services, operations, or investments.

Cover

Protection or security provided by an insurance policy; or in finance, to deal with a position by buying or selling securities.

Good Faith

Acting with honesty and sincerity without the intention to defraud or deceive others.

Substituted Goods

Products or items offered in place of the original goods specified in a contract, often acceptable if they meet the contract's terms and intended use.