31 suppose the production of a good results in

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31. Suppose the production of a good results in negative externalities. If society produces theoutput consistent with the intersection of the demand curve and the marginal private cost curve,thena.the socially optimal level of output will be produced.b.society will incur a net social cost.c.society will want more output produced, and producers will be willing to satisfy thisdesire at a price that society deems acceptable.d.all of the abovee.There is not enough information to answer this question.ANSWER:b
POINTS:1DIFFICULTY:ModerateNATIONAL STANDARDS:United States - BUSPROG: AnalyticLOCAL STANDARDS:United States - OH - Default City - DISC: Markets, market failure,a - DISC: Markets, market failure, and externalitiesKEYWORDS:Bloom's: Comprehension32. Suppose the production of a good results in negative externalities. If output is at theintersection of the demand curve and the marginal social cost curve, thena
POINTS:1DIFFICULTY:ModerateNATIONAL STANDARDS:United States - BUSPROG: AnalyticLOCAL STANDARDS:United States - OH - Default City - DISC: Markets, market failure,a - DISC: Markets, market failure, and externalitiesKEYWORDS:Bloom's: Comprehension33. If society is experiencing a net social cost from the production of a good, this implies that
b.producers would rather produce the output at which marginal social cost equals thedemand for the good.c.negative externalities are involved in the production of this good.d.none of the aboveANSWER:cPOINTS:1DIFFICULTY:ModerateNATIONAL STANDARDS:United States - BUSPROG: AnalyticLOCAL STANDARDS:United States - OH - Default City - DISC: Markets, market failure,

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Term
Fall
Professor
FOUDY
Tags
Economics, Market failure, Externality

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