When externalities are present, the socially optimal outcome occurs where the _____ benefit equals the _____ cost.Question 3Answera.marginal external; marginal externalb.marginal social; marginal socialc.total social; total sociald.total external; total external

At the optimal quantity of a public good:A. marginal benefit exceeds marginal cost by the greatest amount.B. total benefit equals total cost.C. marginal benefit equals marginal cost.D. marginal benefit is zer

Consider a market with a negative externality. The market will tend to ________ the good because the market participants tend to ignore the ________ of their decision.Group of answer choicesoverproduce; external benefitunderproduce; external benefitunderproduce; external costoverproduce; external costoverproduce; internal benefit

If the social benefit of consuming a good or a service exceeds the private benefit,Group of answer choicesthe market achieves economic efficiency.a negative externality exists.a positive externality exists.the sum of consumer surplus and producer surplus is maximised.

The optimal level of economic activity occurs when:Multiple choice question.the total benefit equals the total cost.the marginal benefit equals the total cost.the marginal benefit equals the marginal cost.the total benefit equals the marginal cost.

Consider a good with external costs. Which of the following best describes why the market does not produce an allocatively efficient amount?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aThe marginal benefit to consumers exceeds the marginal private cost of production and the marginal social cost of production.bThe marginal social cost exceeds the marginal social benefit.cThe marginal social benefit exceeds the marginal social cost.dThe marginal private cost of production and the marginal social cost exceed the marginal benefit to consumers.Unanswered2 attempts left