Multiple Choice
Suppose that the marginal private benefit from buying an extra unit of a good is $10 and the marginal social benefit of buying the extra unit is $13. In this case, the purchase of the good involves a _____ externality, and the equilibrium quantity purchased in a free market will be ____ than socially optimal.
A) negative; more
B) negative; less
C) positive; more
D) positive; less
Correct Answer:
Verified
Correct Answer:
Verified
Q72: Which of the following conditions will lead
Q73: Use Figure: Negative Externality and Deadweight Loss
Q74: Use Figure: Negative Externality and Deadweight Loss
Q75: If beekeepers benefit from their neighbor's flower
Q76: National defense is an example of a
Q78: Use Figure: Externalities and Deadweight Loss I.
Q79: Honey bees are one of the foremost
Q80: Use Figure: Positive Externalities and Deadweight Loss.
Q81: Suppose that beekeepers' bees pollinate a neighbor's
Q82: If the purchase of a good involves