A good or service with a positive externality is one which ______
A. everyone wants to have access to
B. is produced in the social interest
C. the marginal social benefit exceeds the marginal private benefit
D. the marginal external benefit exceeds the marginal private benefit
C The definition of marginal social benefit shows that answer C is correct.
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If marginal revenue is negative then the revenue lost from receiving a lower price on all the units that could have been sold at the original price is smaller than the additional revenue from selling one more unit of the good
Indicate whether the statement is true or false
The market structure in which strategic considerations are most important is
A) monopolistic competition. B) oligopoly. C) pure competition. D) pure monopoly.
When investors follow a "herd instinct," they make decisions:
A. based on hearsay, not objective information. B. based on emotion, not objective information. C. as a group, inflating the prices of goods somewhat arbitrarily. D. based on the sound logic of a group, rather than the individual.
If the price of a product increases
A. there is an increase in quantity supplied and a decrease in demand. B. there is an increase in quantity supplied and a decrease in quantity demanded. C. there is an increase in supply and a decrease in quantity demanded. D. there is an increase in supply and a decrease in demand.