Question 5 A negative externality exists when a person's or group's actions cause a benefit that is felt by others. a person's or group's actions cause a cost that is felt by others. market output is less than socially optimal output. 2 pts
Added by Albert R.
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What is an externality? An externality is a cost or benefit that is not directly accounted for by the individuals or groups involved in a transaction or activity. It is an unintended consequence that affects third parties who are not involved in the Show more…
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An externality is Group of answer choices the total cost to society of producing an additional unit of a good or service. a problem intrinsic to public goods: The good or service is so costly that its provision generally does not depend on whether or not any single person pays. a cost or benefit resulting from some activity or transaction that is imposed or bestowed on parties outside the activity or transaction. the amount a consumer pays to consume an additional amount of a particular good.
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Consider a market with a positive production externality. This type of market Group of answer choices does not produce enough output for social efficiency produces too much output for social efficiency charges a price that is too low for social efficiency none of these are true
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A positive externality or spillover benefit (additional social benefit) occurs when: a. Product differentiation increases the variety of products available to consumers. b. Firms earn positive economic profits. c. The benefits associated with a product exceed those accruing to people who consume it. d. A firm does not bear all of the costs of producing a good or service.
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