If the Production of a Good Causes an External Cost,then

question 280

Multiple Choice

If the production of a good causes an external cost,then the efficient quantity is

• A) equal to the quantity at which the marginal benefit equals marginal cost.
• B) less than the quantity at which the marginal benefit equals the marginal cost.
• C) more than the quantity at which the marginal benefit equals the marginal cost.
• D) the quantity at which the marginal private benefit is greater than the marginal social benefit.
• E) None of the above answers is correct.

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Definitions:

Majority Support

The condition where more than half of a group or constituency expresses approval or endorsement of a proposition or representative.

Culture

The customs, social behavior, and norms found in human societies.

NLRA

The National Labor Relations Act, a foundational statute in United States labor law that protects the rights of employees to organize, engage in collective bargaining, and participate in concerted activities for mutual aid or protection.

NLRA

The National Labor Relations Act of 1935, a foundational statute in United States labor law which guarantees the right of private sector employees to organize into trade unions, engage in collective bargaining, and take collective action.