Which of the following statements is not true?
A) If social cost and private cost are the same, any externality that exists will be positive.
B) If external costs are not zero, externalities exist.
C) If somebody could buy the Pacific Ocean, fewer dolphins would be killed in fishing nets.
D) Every production process generates market failure.
E) When pesticides are used in producing food, the quantity of food produced is greater than the socially optimal level.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is not true?
A) If social cost and private cost are the same, any externality that exists will be positive.
B) If external costs are not zero, externalities exist.
C) If somebody could buy the Pacific Ocean, fewer dolphins would be killed in fishing nets.
D) Every production process generates market failure.
E) When pesticides are used in producing food, the quantity of food produced is greater than the socially optimal level.

Which of the Following Statements Is Not True