Which of the following is true of the private level of output of goods with negative externalities?
A) The private level of output will be lower than the socially-optimal level.
B) The private firm will produce that level of output where marginal social benefit equals
C) The private firm will produce that level of output where marginal social cost equals marginal private benefit.
D) The private level of output will be higher than the socially-optimal level.
Correct Answer:
Verified
Q35: When there is an externality in the
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
Q41: In the following graph, MPC and MSC
Q42: Which of the following is an example
Q43: Which of the following is true of
Q44: Under the European system of carbon emissions
Q45: In the following graph, MR and AR
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