If the units of output purchased in a competitive market generate positive externality benefits, we can infer that the competitive equilibrium outcome is such t A the market price is equal to marginal social benefit marginal private cost is greater than the market price C I do not want to answer this question. D marginal private cost is greater than marginal private benefit E marginal private cost is less than marginal social benefit F marginal private benefit is greater than marginal social benefit
If the units of output purchased in a competitive market generate positive externality benefits, we can infer that the competitive equilibrium outcome is such t A the market price is equal to marginal social benefit marginal private cost is greater than the market price C I do not want to answer this question. D marginal private cost is greater than marginal private benefit E marginal private cost is less than marginal social benefit F marginal private benefit is greater than marginal social benefit
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter12: Environmental Protection And Negative Externalities
Section: Chapter Questions
Problem 41P: Refer to Table 12.2. The externality created by the refrigerator production was 100. However, once...
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