If the production of a good generates a negative (or detrimental) externality, then in a competitive market output will take place where:

Select one:

a. Marginal Utility = Marginal Social Cost.

b. Price < Marginal Private Cost.

c. Marginal Private Cost > Marginal Social Cost.

d. Marginal Social Cost > Marginal Private Cost.

e. Total Revenue < Marginal Private Cost.

At what level of output does a profit maximizing perfectly competitive firm produce?

Select one:

a. Price = ATC.

b. Marginal Revenue = Marginal Cost.

c. Profit = Total Revenue - Total Cost.

d. Total Cost = Marginal Cost.

e. Fixed Cost - Marginal Cost = Total Revenue

Chelsea is willing to pay $300 for a pair of new Prada boots. When she goes to her favorite boutique to buy the boots she finds them on sale for $230. The $70 difference is called:

Select one:

a. Marginal utility.

b. Consumer surplus.

c. Excess demand.

d. Superfluous consumption.