The Production of a Good with Positive Externalities Will Increase

question 37

Multiple Choice

The production of a good with positive externalities will increase when:

• A) the government provides a subsidy for the good.
• B) the marginal internal cost of the good is higher than the marginal total cost.
• C) there is a price ceiling of zero in the market.
• D) the producer sells the good for a very high price markup.
• E) there are a large number of buyers and sellers in the market.

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Definitions:

Insertion Point

A cursor in computer interfaces that indicates where new text or data will be inserted within a document or input field.

End of Data

A marker or indicator used to signify the conclusion of a set of data within a database or data stream.

Accounting Number Format

A style of formatting numbers in financial documents that aligns currency symbols and decimal points, making it easier to read financial statements.

Decimal Places

The positions to the right of a decimal point in a number, representing fractions of a whole and determining precision.