If all firms had to bear all the social costs of their actions, we should observe marginal cost curves
A) of all firms shifting up.
B) of some firms shifting up, of some others shifting down, and of the rest not shifting at all.
C) of all firms that had generated externalities shifting up while there would be no change for the rest of the firms.
D) of some firms shifting up and of the rest shifting down.
Answer: B
Economics
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Refer to the scenario above. A change in the probability of breakdown to 10 percent will:
A) increase the net present value to $135.65. B) lead to a negative net present value. C) decrease the net present value to $16.02. D) decrease the net present value to $10.
Economics
In the above table, the marginal revenue from the fourth unit of output is
A) $30. B) $147. C) $150. D) $180.
Economics