Suppose electricity generates a negative externality in production. If so, thenO A. the marginal social benefit of electricity is less than the marginal private benefit.O B. the marginal social cost of electricity equals the marginal private cost.Oc. the marginal social cost of electricity equals the marginal social benefit.O D. the marginal social cost of electricity is less than the marginal private cost.O E. the marginal social cost of electricity is greater than the marginal private cost.

In an economy, negative externality refers to the adverse impact of an individual's action on the…

Suppose electricity generates a negative externality in production. If so, then A. the marginal social benefit of electricity is less than the marginal private benefit. B. the marginal social cost of electricity equals the marginal private cost. C. the marginal social cost of electricity equals the marginal social benefit. D. the marginal social cost of electricity is less than the marginal private cost. OE. the marginal social cost of electricity is greater than the marginal private cost.

Suppose electricity generates a negative externality in production. If so, then A. the marginal social benefit of electricity is less than the marginal private benefit. B. the marginal social cost of electricity equals the marginal private cost. C. the marginal social cost of electricity equals the marginal social benefit. D. the marginal social cost of electricity is less than the marginal private cost. OE. the marginal social cost of electricity is greater than the marginal private cost.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

Section: Chapter Questions

Problem 24P: Assume that the marginal private costs of a film producing fuel-efficient can; is greater than the...

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