If the social cost of producing a good or service exceeds the private cost
A) a positive externality exists.
B) the sum of consumer surplus and producer surplus is maximized.
C) the market achieves economic efficiency.
D) a negative externality exists.
Answer: D
You might also like to view...
As the demand for corn increases to provide input for ethanol production, what is expected to happen to the price elasticity of corn supply?
A) It will decrease. B) It will become zero. C) It will increase. D) It will not change.
When equilibrium is present, if market conditions do not change,
a. the current price will tend to rise in the future, and the current quantity will tend to fall. b. the current price will tend to fall in the future, and the current quantity will tend to rise. c. the current price and quantity will tend to persist in the future. d. the current price will tend to persist in the future, but the current quantity will tend to rise.