In the equilibrium for a common resource with no government regulation
a) marginal private benefit equals marginal cost
b) marginal social benefit is greater than marginal cost
c) marginal social benefit equals marginal cost
d) marginal social benefit is greater than marginal private benefit
Ans: a) marginal private benefit equals marginal cost
You might also like to view...
According to the monetarist view, the aggregate supply curve is:
A. Horizontal until full employment is reached and then it becomes vertical. B. Horizontal at all levels of output. C. Vertical at the natural rate of unemployment. D. First horizontal, then upward sloping, and finally vertical.
Based on the circular flow model, goods and services flow from:
a. households to businesses in product markets. b. businesses to households in product markets. c. households to businesses in factor markets. d. businesses to households in factor markets.