When marginal private benefit is equal to marginal private cost,
A. the activity in question generates no negative externality.
B. all negative externalities have been internalized.
C. all positive externalities have been internalized.
D. all of the above
E. a or b
Answer: C
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Refer to Figure 9.3. If the government establishes a price ceiling of $1.00, consumer surplus will
A) fall by $50. B) fall by $150. C) remain the same. D) rise by $50. E) rise by $150.
According to the text, the _______________ is currently the primary reserve currency
A) Chinese renmimbi B) euro C) U.S. dollar D) Japanese yen E) British pound
The change in total product occurring when a variable input is increased and all other inputs are held constant is
A) average total cost. B) marginal cost. C) average product. D) marginal product.
Compound interest is:
A. the payment of interest on the original deposit. B. the payment of interest on both the original deposit and all accumulated interest. C. the interest rate adjusted for the rate of inflation. D. the real rate of interest compounded by the rate of inflation.