Which of the following statements is not true?
A) If marginal social cost and marginal private cost are the same, any externality that exists will be positive.
B) If marginal externality costs are not zero, externalities exist.
C) An expansion of property rights to include air quality and scenic beauty would bring some private markets close to a socially optimal equilibrium.
D) The existence of pollution as the byproduct of a production or exchange process indicates a market failure.
E) When municipal water supplies have heavy concentration of agricultural chemicals, it is probable that agricultural output from the area is produced in quantities greater than the socially optimal level.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is not true?
A) If marginal social cost and marginal private cost are the same, any externality that exists will be positive.
B) If marginal externality costs are not zero, externalities exist.
C) An expansion of property rights to include air quality and scenic beauty would bring some private markets close to a socially optimal equilibrium.
D) The existence of pollution as the byproduct of a production or exchange process indicates a market failure.
E) When municipal water supplies have heavy concentration of agricultural chemicals, it is probable that agricultural output from the area is produced in quantities greater than the socially optimal level.

Which of the Following Statements Is Not True