--%>

Marginal social costs exceed the marginal social benefits

When governments compelled pharmaceutical producers to manufacture and sell at least Q3 penicillin, in that case the: (1) purely-competitive firms which produced penicillin would experience persistent economic profits. (2) resulting inadequate antibiotic treatments would leave much disease untreated. (3) marginal social benefits of penicillin would exceed the marginal social costs. (4) loss in social welfare would about equal the area of triangle adf. (5) marginal social costs of penicillin would exceed the marginal social benefits.

1856_Efficiency and Welfare.png

Hey friends please give your opinion for the problem of Economics that is given above.

   Related Questions in Microeconomics

  • Q : Separation of the Economic Functions

    Separation of ownership or stockholders by control (management) into modern giant corporations tends to divide the economic functions of: (w) capitalists. (x) union leaders. (y) entrepreneurship. (z) bureaucrats. I

  • Q : Relative magnitudes of income effects

    The firm’s wage elasticity of demand for the labor is least influenced by: (1) How much time the firm have to adjust to modifying wages. (2) The proportion of labor’s share of net costs. (3) The ease of replacement between labor and capita

  • Q : Generating good for the society All

    All along the production possibilities frontier, a society can generate more of a good merely if: (1) This provides some of some other good. (2) Resources are completely employed. (3) All resources are efficiently employed. (4) Consumption surpasses i

  • Q : Firms in industry change When the firms

    When the firms are earning abnormal gains, how will the number of firms in industry change? Answer: The number of firms in industry will tend to rise.

  • Q : What is fiscal deficit Fiscal deficit :

    Fiscal deficit: When TE (RE + CE) > TR (RR + CR) of the government, excluding borrowing. It is termed as fiscal deficit.

  • Q : Present Value and Rates of Return When

    When the annual interest rate is 12 percent and a rental house can be expected to rent perpetually for $1,000 monthly, rough computation suggests the house contain a present value of: (1) $240,000. (2) $144,000. (3) $100,000. (4) $72,000. (5) $12,000.

  • Q : Problem on Laws and Regulations Can

    Can someone please help me in finding out the accurate answer from the following question. Raised demand for beer would be most probable to follow a fall in the: (1) Legal drinking age. (2) Price of ale. (3) Price of hard liquor. (4) Price of wine.

  • Q : Procedure of transforming predictable

    The procedure of transforming predictable income streams in wealth is termed as: (1) capitalization. (2) profiteering. (3) financial alchemy. (4) capitalism. (5) asset conversion. Can someone explain/help me with b

  • Q : Price elasticity of demand coefficient

    In this demonstrated figure, there the price elasticity of demand coefficient is: (1) one at the midpoint. (2) greater than one in range a. (3) less than one in range b. (4) falling along with movements down along the demand curve. (5) All of the abov