When there is an externality in the production of a good:
A) the value that consumers get from consuming the good is equal to the cost of producing the good.
B) some costs are passed on to individuals not involved in production or consumption.
C) the market for the good is likely to be perfectly competitive.
D) resource allocation is likely to be allocatively e?cient.
Correct Answer:
Verified
Q30: Market failure is likely in markets that:
A)
Q31: In the following graph, MPC and MSC
Q32: Which of the following is true of
Q33: Pareto e?ciency is achieved when:
A) producers are
Q34: When would stock options offered to an
Q36: Pareto e?ciency holds in a(n) _.
A) monopoly
B)
Q37: When _, there is market failure.
A) the
Q38: A Pareto e?cient outcome is one where:
A)
Q39: If the marginal private cost of a
Q40: Which of the following is true of
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