Private Markets Fail to Reach a Socially Optimal Equilibrium When

question 236

Multiple Choice

Private markets fail to reach a socially optimal equilibrium when external benefits are present because the:

• A) social value exceeds the private value at the private market solution.
• B) private cost exceeds the social benefit at the private market solution.
• C) private benefit equals the social benefit at the private market solution.
• D) None of the answers is correct. Private markets DO achieve a socially optimal equilibrium when external benefits are present.

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Definitions:

Injection

A method of delivering drugs or other substances into the body using a needle and syringe.

Antibody

A protein produced by the body's immune system that recognizes and helps fight infections and other foreign substances in the body.

Immunoglobulin

A type of protein, also known as an antibody, produced by the immune system to fight pathogens, such as bacteria and viruses.

Antigens

Substances that when introduced into the body stimulate the production of antibodies, triggering an immune response.