If the production of a good yields a negative externality, then the social-cost curve lies ___________ the supply curve, and the socially optimal quantity is ___________ than the equilibrium quantity. ( )
A. above, greater
B. above, less
C. below, greater
D. below, less
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When a monopolistically competitive firm raises its price, quantity demanded falls to zero. ( )
The task of economic regulation is to approximate the results of the competitive market. ( )
Imperfectly competitive firms are characterized by horizontal demand curves. ( )
Internalizing an externality means incentives are altered so that people take account of the external effects of their actions.( )