If the social cost of producing a good or service exceeds the private cost

A) the sum of consumer surplus and producer surplus is maximized.
B) a positive externality exists.
C) the market achieves economic efficiency.
D) a negative externality exists.

D

Economics

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You are the manager of a theater. At present the theater charges the same admission price of $8 to all customers, regardless of age. You propose a two-tier pricing scheme: $5 for children under the age of 12 and $10 for adults

You tell your supervisor that your proposal is likely to increase revenue. What must be true about the price elasticity of demand if your proposal is to achieve its goal of raising revenue? Explain your answer.

Economics

The rental price of capital is

a. determined outside the realm of factor markets. b. the price paid to use capital for a limited time period. c. the price paid for ownership of the capital. d. always more than the purchase price.

Economics