If a Firm Produces a Good and Its Consumption Generates

Multiple Choice

If a firm produces a good and its consumption generates external benefits,then at the competitive market equilibrium

A) the government could subsidize the production of this good to improve efficiency.
B) the marginal private benefit is greater than the marginal cost of producing the last unit.
C) the output would be more than the socially optimal amount.
D) the firm will not produce an additional amount if it can internalize the external benefits.
E) the marginal social benefit is less than the marginal cost of producing the last unit.