The Socially Optimal Level of Output of a Good with an Externality

question 187

Multiple Choice

The socially optimal level of output of a good with an externality occurs when

• A)the marginal private costs of production are equal to marginal private revenues
• B)the firm maximizes its profits
• C)the consumer maximizes his or her utility
• D)the marginal social cost of production equals the marginal social benefit of the good
• E)the firm is making a normal profit

---

Definitions:

Victory and Defeat

Terms denoting success or failure in a particular endeavor, competition, or conflict.

Strongest Individual

Refers to a person possessing superior strength, whether it be physical, mental, emotional, or in terms of character, often standing out in a group or society.

Great Society

A set of domestic programs launched by President Lyndon B. Johnson in the United States aimed at eliminating poverty and racial injustice.

Leadership Without Management

The process of influencing and guiding others without traditional managerial control, focusing on vision and inspiration.