Which of the following statements is true?
A) When production of a good yields positive externalities but output is currently at the market level, then a change in output to the socially optimal level will certainly be for the worse.
B) When production of a good yields negative externalities but output is currently at the market level, then a change in output to the socially optimal level will cause benefits to increase by an amount greater than costs will increase.
C) When production of a good yields positive externalities but output is currently at the market level, then a change in output to the socially optimal level will cause benefits to increase by an amount less than costs will increase.
D) a, b, and c
E) none of the above
Correct Answer:
Verified
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 Q44: Which of the following statements is false? Q45: Suppose the production of a good results Q46: Suppose the production of a good results Q47: When positive externalities are involved, the market Q48: 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
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A)external costs are
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A)A
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