If a Good Has an External Cost, Then the Marginal

question 13

Multiple Choice

If a good has an external cost, then the marginal private cost curve

• A) lies below the marginal social cost curve.
• B) lies above the marginal social cost curve.
• C) is negative.
• D) is the same as the marginal external cost curve.

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Definitions:

Counter Rung

A ladder logic diagram element that tracks and controls occurrences of an event within a PLC program.

Parameter

A variable or factor that can be set or adjusted in order to influence or determine a process or system's behavior.

External Trigger

A signal or event from outside a system that initiates a process or action within the system.

State Change

A transition in the condition or mode of a system or component, such as from off to on, or from idle to active.