Suppose the market-equilibrium quantity of good x is 5,000 units and the socially-optimal quantity of good x is 4,000 units. Then
A) the production of good x imposes external costs on society.
B) the private value of good x exceeds the private cost of good x when 5,000 units are produced.
C) the private cost of good x exceeds the private value of good x when 5,000 units are produced.
D) the social cost of good x exceeds the private value of good x when 4,000 units are produced.
Correct Answer:
Verified
Q447: The term market failure refers to
A)a market
Q448: An externality is the impact of
A)society's decisions
Q449: Scenario 10-1
The demand curve for gasoline slopes
Q450: Scenario 10-1
The demand curve for gasoline slopes
Q451: Scenario 10-1
The demand curve for gasoline slopes
Q453: Figure 10-20. Q454: Education is heavily subsidized through public schools Q455: Education yields positive externalities. For example, a Q456: Figure 10-20. Q457: Education yields positive externalities. For example,
A)colleges and
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