If a Good Is Produced by Firms That Incur All

question 29

Multiple Choice

If a good is produced by firms that incur all private and external costs, the price consumers pay

• A) will be efficient since it includes all social costs.
• B) will not be socially acceptable.
• C) will be too high because the consumers end up paying all of the costs instead of the firm.
• D) will be the correct price, but inefficient.

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Definitions:

Local Destruction

The targeted elimination or damage of a specific area or tissue, often used in medical or surgical contexts.

Serous Fluid

A clear, pale yellow fluid that fills the space between membranes lining body cavities and surrounding internal organs.

Vesicle

A small fluid-filled bladder or sac within the body, including structures such as blisters or biological vesicles in cell biology.

Papule

A small, raised, and solid pimple or swelling on the skin that does not contain pus.