If Positive Externalities Are Present in the Production of a Good

question 155

Multiple Choice

If positive externalities are present in the production of a good, then society will:

• A)​produce too much of the good since the marginal private benefit to consumers is less than the marginal social benefit.
• B)​produce too little of the good since the marginal private benefit to consumers is greater than the marginal social benefit.
• C)​produce too much of the good since the marginal private benefit to consumers is greater than the marginal social benefit.
• D)​produce too little of the good since the marginal private benefit to consumers is less than the marginal social benefit.

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Definitions:

Female Alcoholism

Alcohol use disorder as it specifically applies to females, which may involve patterns of drinking that are harmful, including excessive consumption and dependence.

College Binge Drinking

Excessive alcohol consumption by college students in a short period of time, often leading to significant health and behavioral issues.

Binge Drinking

Binge drinking is the consumption of an excessive amount of alcohol in a short time period, typically with the intention of becoming intoxicated.

College Campuses

Specific areas or properties owned by educational institutions where academic buildings, dormitories, and facilities for students and staff are located.