To maximize social welfare in the presence of a negative externality, marginal __________ must equal marginal __________
a. social cost; private cost
b. private cost; social cost
c. social cost; social benefit
d. private cost; social benefit
e. social cost; external cost
C
Economics
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Competitive markets are characterized by
a. a small number of buyers and sellers. b. unique products. c. the interdependence of firms. d. free entry and exit by firms.
Economics
If R represents the reserve ratio for all banks in the economy, then the money multiplier is
a. 1/(1-R). b. 1/R. c. 1/(1+R). d. (1+R)/R.
Economics