🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
Economics
9
answers
0
watching
147
views

If negative externalities are present in a market, ________.

A) the price charged in the market is higher than the socially optimal price

B) the quantity supplied in the market is larger than the socially optimal level

C) the marginal social cost of production is lower than the marginal private cost

D) the average cost of production exceeds the marginal cost of production at all output levels

Watch
9
answers
0
watching
147
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Kristelle Balando
Kristelle BalandoLv10
17 Sep 2020
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

171 For a product with external costs (negative externalities) that is produced in a competitive, unregulated market, the market price will be the price at the socially optimum level of production and the market quantity will be _than the socially optimum level of production tits will be A. lower than; more B. higher than; more C. lower than; less D. the same as; more E. higher than; less

When there is a positive externality in the market for a good, which of these statements is true? (choose all the correct answers)

a. The private market tends to produce less than is socially efficient.

b. The social planner sets marginal social benefit equal to firms' marginal cost.

c. Firms set their marginal private cost equal to the marginal external cost.

d. The private market tends to produce more than is socially efficient.

e. Production of this good should be banned

Milk production requires the use of millions of cows. Cows release methane gas and waste piles that can cause major pollution problems. Is there too little, too much, or the correct amount of milk produced from a socially optimal perspective? Briefly explain your answer. Support your explanation by drawing a graph representing the market for milk that correctly identifies private and social marginal benefit and marginal cost curves along with the market equilibrium price and quantity versus the socially optimal equilibrium price and quantity. Also, identify any deadweight loss in the graph if any.

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in