When there are beneficial externalities in a market,
A. marginal social cost is above marginal private cost.
B. marginal social benefit is above marginal private benefit.
C. marginal social benefit is below marginal private benefit.
D. marginal social cost is below marginal private cost.
Answer: B
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In the long run, a firm's producer surplus is equal to the
A) economic rent it enjoys from its scarce inputs. B) revenue it earns in the long run. C) positive economic profit it earns in the long run. D) difference between total revenue and total variable costs. E) difference between total revenue and total fixed costs.
Industrial policy is an effort by a government to:
A. regulate prices in particular industries. B. identify the most profitable industries in the world, and adopt them in their country. C. favor some industries over others. D. control markets that are industrial.
Which of the following is included in personal income but not in national income?
a. Corporate profits b. Social Security payments c. Compensation for workers d. Proprietors' income
So far this year prices have been up __% over last year's prices.
Fill in the blank(s) with the appropriate word(s).