The difference between the marginal social cost and the marginal private cost equals the
A) cost of producing an additional unit of a good.
B) marginal external benefit.
C) marginal external cost.
D) marginal private benefit.
C
You might also like to view...
Economic studies of lottery winners and people who have inherited large amounts of money show that
a. the income effect of winning the lottery or inheriting large amounts of money likely outweighs the substitution effect for most people. b. the substitution effect of winning the lottery or inheriting large amounts of money likely outweighs the income effect for most people. c. most people view leisure as an inferior good. d. most people's labor supply is unaffected by changes in wealth.
An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply. B. increase in aggregate demand. C. increase in short-run aggregate supply. D. decrease in aggregate demand.