Which of the following statements is correct? a. Marginal external cost equals marginal private cost minus marginal social cost. b. Marginal social cost plus marginal external cost equals marginal private cost. c. Marginal social cost minus marginal private cost equals marginal external cost. d. Marginal social cost plus marginal private cost equals marginal external cost.
Which of the following statements is correct? a. Marginal external cost equals marginal private cost minus marginal social cost. b. Marginal social cost plus marginal external cost equals marginal private cost. c. Marginal social cost minus marginal private cost equals marginal external cost. d. Marginal social cost plus marginal private cost equals marginal external cost.
Chapter17: Externalities And The Environment
Section: Chapter Questions
Problem 2.5P
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Which of the following statements is correct?
a. Marginal external cost equals marginal private cost minus marginal social cost .
b. Marginal social cost plus marginal external cost equals marginal private cost.
c. Marginal social cost minus marginal private cost equals marginal external cost.
d. Marginal social cost plus marginal private cost equals marginal external cost.
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