Solved

If the Social Cost of Producing a Good or Service

Question 9

Multiple Choice

If the social cost of producing a good or service exceeds the private cost,


A) a positive externality exists.
B) the sum of consumer surplus and producer surplus is maximised.
C) the market achieves economic efficiency.
D) a negative externality exists.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q4: Figure 15.5 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1015/.jpg" alt="Figure 15.5

Q7: Figure 15.4 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1015/.jpg" alt="Figure 15.4

Q10: Assume that production from an electric utility

Q11: Figure 15.6 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1015/.jpg" alt="Figure 15.6

Q12: What does the phrase 'internalising an external

Q13: Figure 15.14 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1015/.jpg" alt="Figure 15.14

Q14: When the government imposes a tax equal

Q98: Suppose a tax equal to the value

Q128: A market failure arises when an entire

Q227: An externality is an example of a