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When production of a good creates an external benefit, it positively impacts the overall welfare of society by increasing social welfare beyond what is reflected in market prices. This leads to a more efficient allocation of resources and a higher level of overall satisfaction for society as a whole.

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5mo ago

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What are the difference between social cost and economic growth?

Social cost is part of economic growth because overall economic production is a function of social benefit minus social costs.


What is the point where the overall production is very slow?

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What is the relationship between the marginal benefit of consuming a good and the overall satisfaction or utility derived from that consumption?

The relationship between the marginal benefit of consuming a good and the overall satisfaction or utility derived from that consumption is that as you consume more of a good, the marginal benefit decreases while the overall satisfaction or utility increases at a decreasing rate. This is known as the law of diminishing marginal utility.


What are the internal and external factors that affect pricing?

Internal factors affecting pricing include production costs, company objectives, marketing strategies, and overall financial goals. External factors encompass market demand, competition, economic conditions, and regulatory influences. These elements interact to shape a company's pricing strategy, ensuring it aligns with both internal capabilities and external market realities. Balancing these factors is crucial for achieving profitability and market competitiveness.


How can one determine the allocatively efficient quantity in a market?

To determine the allocatively efficient quantity in a market, one must find the point where the marginal cost of production equals the marginal benefit to consumers. This occurs when resources are allocated in a way that maximizes overall societal welfare.

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What are the difference between social cost and economic growth?

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How can this benefit you in your overall career?

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What are some advantages and disadvantages of the external location of the testes?

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What is the benefit of an overall number one seed?

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What is the point where the overall production is very slow?

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What is the point where overall production is very low?

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