Suppose That the Production of a Good Causes Positive Externalities

question 126

Multiple Choice

Suppose that the production of a good causes positive externalities. What will happen if the good is produced at the level at which the marginal private benefit curve meets the supply curve?

• A)The level of production will be socially desirable.
• B)The level of production will result in a net social cost.
• C)The level of production will result in a net social benefit.
• D)The producers will incur losses.
• E)There will be no buyers in the market.

---

Definitions:

Conscious Experience

The array of thoughts, feelings, perceptions, and sensations that are being experienced by an individual at any given moment.

Cultural Diversity

The existence of a variety of cultural or ethnic groups within a society, celebrating differences in race, language, religion, traditions, and values.

Canadian Psychological Association

The primary organization representing psychologists throughout Canada, focusing on the advancement and promotion of psychology as a science, profession, and tool for human welfare.

Experimental Psychology Lab

A controlled environment where scientific studies are conducted to explore psychological phenomena.