Suppose the production of a good results in negative externalities. If output is at the intersection of the demand curve and the marginal social cost curve, then
A) the socially optimal level of output will be produced.
B) society will incur a net social cost.
C) society will want less output produced, and producers will be willing to satisfy this desire at a price that society deems acceptable.
D) b and c
Correct Answer:
Verified
Q32: If society is experiencing a net social
Q33: Suppose the production of a good results
Q34: Exhibit 30-1 Q35: A consequence of a negative externality is Q36: Suppose the production of a good results Q38: Suppose the production of a good results Q39: Exhibit 30-1 Q40: When a negative externality exists, Q41: If a person who generates a negative Q42: Exhibit 30-2 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
![]()
![]()
A)external costs are
![]()