In the case of negative externalities, _____
a. the market equilibrium output is greater than the socially optimal output
b. the market equilibrium output is lesser than the socially optimal output
c. the social cost curve lies below the private cost curve
d. the market is allocatively efficient at market equilibrium
a
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Which of the following is likely to be included in a country's Gross Domestic Product in a particular year?
A) An unsold inventory of automobiles produced in that year B) The total amount steel used in the production of automobiles in that year C) The total amount of flour used by bakeries to make bread in that year D) An unused stock of goods produced in the previous year
Average product is equal to
A) marginal product + total product. B) total product ÷ marginal product. C) total product ÷ quantity of labor. D) total product × quantity of labor. E) marginal product × quantity of labor.