In the presence of no externalities,
A) social marginal cost exceeds private marginal cost.
B) social marginal cost is less than private marginal cost.
C) social marginal cost equals private marginal cost.
D) social marginal cost and private marginal cost cannot be compared.
C
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If the interest rate rose above the equilibrium rate, people would attempt to __________ bonds. Bond prices would __________ and the interest rate would __________
A) sell; rise; fall B) buy; rise; fall C) sell; fall; rise D) buy; rise; rise
If the Naval Research Laboratory fired a chemist and the Environmental Protection Agency hired her at the same salary, the net effect of these events would cause _____ in aggregate demand
a. an increase b. an increase c. a decrease d. a decrease e. no change
Danzon and Furukawa (2003) argue that:
a. the provision of government-provided free care increases the availability of newly introduced drugs to everyone covered by the government plan. b. generic competition in the U.S. has not done much to lower drug prices or spending. c. price controls in the U.S. would lower drug prices without affecting the overall availability of branded drugs or lowering incentives for future drug development. d. pharmaceutical price differences across countries are roughly in line with differences in per capita GDP, supporting the predictions of Ramsey pricing practices.
Which of the following is the best example of a System 2 decision and action?
A. Marty learns that his usual driving route to work will have significant delays due to construction but forgets and goes that way anyway. B. Doug eats a whole plate of nachos despite the fact it compromises his carefully planned diet. C. Bruce "goes with his gut" when choosing between two kinds of motorcycles to purchase. D. Chuck, who has contemplated a job change for a month and has other offers, chooses to quit when his boss makes him mad.