An external cost arises from the use of fossil fuels because of global warming. If fossil fuels are sold in a competitive market, A. The marginal social cost of fossil fuels will exceed their marginal private cost. B. The marginal social cost of fossil fuels will be less than their marginal private cost C. The marginal social benefit of fossil fuels will exceed their marginal social cost D. a and b E. b and c

An external cost arises from the use of fossil fuels because of global warming. If fossil fuels are sold in a competitive market, A. The marginal social cost of fossil fuels will exceed their marginal private cost. B. The marginal social cost of fossil fuels will be less than their marginal private cost C. The marginal social benefit of fossil fuels will exceed their marginal social cost D. a and b E. b and c

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter14: Environmental Economics

Section: Chapter Questions

Problem 13SQP

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