35.

If at market equilibrium the marginal social cost of producing a good exceeds the marginal private cost,

Group of answer choices

the price charged for the good is too high

the good produces a positive externality

not enough of the product is being produced

the good produces a negative externality

the government should produce the good

36.

When society receives more benefits from a good than the individuals who consume the good,

Group of answer choices

too much of the good would be produced by a private market

there is no market failure

there is a market failure

the marginal social benefit for the good is less than the marginal social cost

37.

When a company holds a patent on a life-saving drug, government would likely reduce incentives for future development if it did any of the following except:

Group of answer choices

forcing the company to charge a price equal to marginal cost.

taxing away the positive economic profit earned by the company.

purchasing the patent from the company and allowing anyone to make the drug.

establishing an effective price ceiling in this market.

38.

Suppose environmental groups pressure the local government to reduce the number of pollution rights to be sold annually in a cap and trade pollution permit market. Other things equal,

Group of answer choices

the price of pollution rights would fall, and pollution would also fall

pollution would not be affected

the price of pollution rights would fall, and pollution would rise

the price of pollution rights would rise, and pollution would fall

the price of pollution rights would rise, and pollution would rise