Assume the production of a good causes a negative externality. In the market equilibrium, the marginal consumer values the good at
a. less than the social cost of producing it.
b. less than the private cost of producing it.
c. more than the social cost of producing it.
d. more than the private cost of producing it.
a
Economics
You might also like to view...
The diagram in panel b (graph) is an example of
A. a demand curve B. the substitution effect C. the income effect D. a demand schedule
Economics
The most important developments that reduced banks cost advantages include
A) the growth of the junk bond market. B) the competition from money market mutual funds. C) the growth of securitization. D) the growth in the commercial paper market.
Economics