In the case of a beneficial externality
a. marginal private cost is below marginal social cost.
b. marginal social cost is above marginal private cost.
c. marginal social cost and marginal private cost are equal.
d. the free market price is below the socially efficient price.
d
You might also like to view...
A surplus occurs in a market when:
A) demand exceeds supply. B) price is lower than the equilibrium price. C) price is higher than the equilibrium price. D) the marginal cost of production is negligible.
"Throwing good money after bad" is also known as the _____ effect
a. anchoring b. sunk-cost c. status quo d. familiarity e. overconfidence
Owning a patent can provide a firm with monopolistic power.
Answer the following statement true (T) or false (F)
The U.S. economy experienced fluctuations in employment and output over the last half of the twentieth century. However, the length of the average recession has been about the same as the length of the average expansion
a. True b. False