The economically efficient level of an externality is zero. True O False

Question

Question

The economically efficient level of an externality is zero. True O False

business economics

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

The economically efficient level occurs where the marginal social benefit equals marginal social cost.

From an activity, someone will always benefit.

Hence the given statement is

False.

Add a comment

Answer 2

Similar Homework Help Questions

The tragedy of the commons is an externality problem. Select one: O True O False

The tragedy of the commons is an externality problem. Select one: O True O False
Government or third-party intervention is necessary to ensure the economically efficient provision of public goods. True...

Government or third-party intervention is necessary to ensure the economically efficient provision of public goods. True False
True or false: A society that maintains the status quo is Pareto efficient. O False True

True or false: A society that maintains the status quo is Pareto efficient. O False True

Which of the following is true about general knowledge? It generates both a positive and a negative externality. O It...

Which of the following is true about general knowledge? It generates both a positive and a negative externality. O It does not generate any externalities. It generates a negative externality. O It generates a positive externality. As a result, private firms would not ? undertake the efficient amount of basic scientific research. Which of the following policies has the United States adopted in response to this problem? Check all that apply. Subsidizing research through the National Institutes of Health Taxing...
8. Problems and Applications Q8 Suppose that the government decides to issue tradable permits for a certain form of pollution. True or False: It is more economically efficient in the market for pollution for the government to distribute the tradable permi

8. Problems and Applications Q8Suppose that the government decides to issue tradable permits for a certain form of pollution.True or False: It is more economically efficient in the market for pollution for the government to distribute the tradable permits than to auction them off.TrueFalseTrue or False: If the government chooses to distribute the permits, the allocation of permits among firms does not matter for efficiency, but it would affect the distribution of wealth.TrueFalse
One way to reach the Pareto efficient level of an activity that generates a positive externality...

One way to reach the Pareto efficient level of an activity that generates a positive externality is to ban the activity. subsidize the activity tax the activity.

True or False: The efficient markets hypothesis holds only if all investors are rational. O True...

True or False: The efficient markets hypothesis holds only if all investors are rational. O True O False Almost all financial theory and decision models assume that the financial markets are efficient. The informational efficiency of financial markets determines the ability of investors to "beat" the market and earn excess (or abnormal) returns on their investments. If the markets are efficient, they will react rapidly as new relevant information becomes available. Financial theorists have identified three levels of informational efficiency...
Which one of the following statements is false? a) The economically optimal level of production is...

Which one of the following statements is false? a) The economically optimal level of production is less than the open-access equilibrium level of production. b) The economically optimal level of production occurs at the maximum sustainable yield. c) Charging a license fee for access to a common resource will reduce the production level below the open-access equilibrium. d) The “tragedy of the commons” is more likely to occur as production effort increases. e) A license fee will reduce the incentives...
QUESTION 16 In C language, FALSE is represented by zero value. O True O False Click...

QUESTION 16 In C language, FALSE is represented by zero value. O True O False Click Save and Submit to save and submit. Click Save A

13. Which of the following statements is INCORRECT? A) If a production method is economically efficient,...

13. Which of the following statements is INCORRECT? A) If a production method is economically efficient, it must also be technologically efficient B) The production function can change if technological improvement takes place C) If a production method is technologically efficient, it must also be economically efficient D) The production function shows the technologically efficient methods to produce different levels of output

The economically efficient level of an externality is zero. True O False

Homework Answers

Add Answer to:
The economically efficient level of an externality is zero. True O False

Post as a guest

Earn Coins

The tragedy of the commons is an externality problem. Select one: O True O False

Government or third-party intervention is necessary to ensure the economically efficient provision of public goods. True...

True or false: A society that maintains the status quo is Pareto efficient. O False True

Which of the following is true about general knowledge? It generates both a positive and a negative externality. O It...

8. Problems and Applications Q8 Suppose that the government decides to issue tradable permits for a certain form of pollution. True or False: It is more economically efficient in the market for pollution for the government to distribute the tradable permi

One way to reach the Pareto efficient level of an activity that generates a positive externality...

True or False: The efficient markets hypothesis holds only if all investors are rational. O True...

Which one of the following statements is false? a) The economically optimal level of production is...

QUESTION 16 In C language, FALSE is represented by zero value. O True O False Click...

13. Which of the following statements is INCORRECT? A) If a production method is economically efficient,...

The economically efficient level of an externality is zero. True O False

Homework Answers

Add Answer to: The economically efficient level of an externality is zero. True O False

Post as a guest

Earn Coins

Add Answer to:
The economically efficient level of an externality is zero. True O False