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.
B
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The amount of corporate profits not paid out in dividends is known as
A. Retained earnings. B. The price/earnings ratio. C. The par value. D. Corporate stock.
If the actual rate of unemployment equals the natural rate of unemployment, then:
A. potential output equals real GDP. B. potential output is greater than real GDP. C. potential output is less than real GDP. D. there is a recessionary gap.
Which measure of inflation best reflects changing prices for the average consumer?
A. Headline inflation B. Nominal inflation C. Core inflation D. Hyper inflation
The actual value of price elasticity of demand
A. is always negative. B. measures the absolute change in quantity demanded when there is a change in price. C. varies with changes in supply. D. will change when the units good is measured in changes.