A positive externality exists when
A. marginal social costs are less than marginal private costs.
B. marginal social costs are greater than marginal private costs.
C. marginal social benefits are less than marginal private benefits.
D. marginal social benefits are greater than marginal private benefits.
E. a and d
Answer: D
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An oligopoly firm with a differentiated product will generally earn the largest profits without advertising.
Answer the following statement true (T) or false (F)
Which statement if false?
A. If the U.S. can produce rice more efficiently than Japan can, the U.S. enjoys an absolute advantage. B. Economists dislike both tariffs and import quotas. C. Under the law of comparative advantage, total output is greatest when each product is made by the country that produces it most efficiently. D. No nation will engage in trade with another nation unless it will gain by that trade.
The bargaining power of customers is not one of Porter's five forces
Indicate whether the statement is true or false
The adverse selection problem in health care occurs because people who are healthier are less likely to buy health insurance because they are less likely to need it.
Answer the following statement true (T) or false (F)