If firms pollute when they produce,
a. marginal social cost equals marginal private cost
b. marginal private cost exceeds marginal social cost
c. marginal social cost exceeds marginal private cost
d. marginal social cost equals marginal external cost
e. marginal social cost equals marginal private cost, which equals marginal external cost
C
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Suppose that because of inflation, the absolute price of a gallon of milk increases by 20% and the absolute price of a gallon of gasoline increases by 10%. In this situation, the price of milk relative to the price of gasoline
a. falls. b. rises. c. remains the same. d. changes unpredictably.
A sole proprietorship is limited to how many owners?
A) 1 B) 2 C) 10 D) There is no limit to the number of owners.
If the firms in a market reach an agreement about pricing and output shares, we would call this
A. a cartel. B. a dominant strategy. C. a Nash equilibrium. D. a duopoly.
The U.S. welfare system was revised by a 1996 law that
a. consolidated all of the previous assistance programs into a single program. b. limited the amount of time that people could receive assistance. c. said it was no longer necessary for poor people to demonstrate an additional "need," such as small children or a disability, to qualify for assistance. d. turned all federally-run welfare programs over to the states.