If a product has zero external costs, then
A) marginal social cost equals marginal private cost.
B) marginal social cost is greater than marginal private cost.
C) marginal social cost is less than marginal private cost.
D) marginal social cost equals zero.
E) We need more information to determine the relationship between marginal private cost and marginal social cost.
A
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According to the Taylor Rule, for a given inflation rate, ________
A) every percentage point increase in the inflation rate increases the federal funds rate by 1.5 percentage points B) if bank reserves double, the federal funds rate should double C) every percentage point increase in the nominal interest rate increases the federal funds rate by 1 percentage point D) if nominal output doubles, the federal funds rate should double
What is the relationship between money growth and inflation across countries? Does your answer support the quantity theory of money?
What will be an ideal response?