If this pollution occurs, the marginal social cost equals the
A) marginal external cost.
B) private marginal cost.
C) sum of the private marginal cost and the marginal external cost.
D) private marginal cost minus the marginal external cost.
C
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For the practice of price discrimination to be successful, the monopoly must:
a. be able to prevent resale of its product. b. face similar demand curves for various markets. c. have similar costs among markets. d. have a downward sloping marginal cost curve.
The reason economists create a market basket is to:
A. track its changing prices to reflect changes in purchasing patterns of firms. B. see how the cost of buying the goods and services on the list changes over time. C. know how each individual consumer is being affected by changing prices. D. get a sense of how people buy items on a weekly basis.
Inflation:
a. Never hurts the economy. b. Only hurts the economy as a whole when it is not expected. c. Never redistributes income and wealth. d. Hurts the economy when incentives are affected.
Perfect price discrimination:
A. minimizes producer surplus. B. maximizes consumer surplus. C. requires each customer to pay exactly his or her willingness to pay. D. is not efficient.