Multiple Choice
Which of the following statements is true?
A) When production of a good yields positive externalities but output is currently at the market level, then a change in output to the socially optimal level will certainly be for the worse.
B) When production of a good yields negative externalities but output is currently at the market level, then a change in output to the socially optimal level will cause benefits to increase by an amount greater than costs will increase.
C) When production of a good yields positive externalities but output is currently at the market level, then a change in output to the socially optimal level will cause benefits to increase by an amount less than costs will increase.
D) When production of a good yields positive externalities but output is currently at the market level, then a change in output to the socially optimal level will be a net change for the better.
Correct Answer:

Verified
Correct Answer:
Verified
Q40: A consequence of a negative externality is
Q107: A negative externality can be internalized<br>A)by persuasion,
Q108: Exhibit 30-4 <br><img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX9059/.jpg" alt="Exhibit 30-4
Q109: Suppose the production of a good results
Q111: A negative externality exists<br>A)when a person's or
Q113: Maria lives next door to Alice. Alice
Q115: An externality is internalized<br>A)when the person(s)or group
Q116: Exhibit 30-1 <br><img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX9059/.jpg" alt="Exhibit 30-1
Q117: A positive externality exists when<br>A)a person's or
Q124: Market failure is a situation in which<br>A)the