Which of the Following Describes How a Negative Externality Affects

question 65

Multiple Choice

Which of the following describes how a negative externality affects a competitive market?

• A)The externality causes a difference between the private cost of production and the social cost.
• B)The externality causes a difference between the private cost of production and the private benefit from consumption.
• C)The externality causes consumer surplus to exceed producer surplus.
• D)The externality causes a difference between the private cost of production and the equilibrium price.

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Definitions:

Histogram

A graphical representation of the distribution of numerical data, where the data is grouped into ranges and each range corresponds to a vertical bar.

Stemplots

A graphical representation of data used to display its shape and distribution, by separating each data value into a stem and a leaf.

Home Runs

In baseball, a hit that allows the batter to circle all the bases, reaching home safely in one play without any errors being committed by the defensive team.

Stemplots

A graphical representation of data that displays actual numbers as stems and leaves, helping to visualize the shape of a distribution.