An externality occurs when
A) the costs of producing a good are paid entirely by the producer.
B) some of the costs of producing a good are paid by someone other than the producer.
C) the marginal social cost of an activity increases as that activity is increased.
D) Both answers A and C are correct.
B
Economics
You might also like to view...
If the consumption function is defined as C = 7,250 + 0.8Y, what is the value of the multiplier?
A) 0.2 B) 0.8 C) 1.25 D) 5
Economics
If the price level in the United States rises less than the increases in the price levels of other countries, exports of U.S.-made goods will increase
Indicate whether the statement is true or false
Economics