For a Common Resource, Efficiency Requires That the ________ Equals

question 375

Multiple Choice

For a common resource, efficiency requires that the ________ equals the ________.

• A) marginal private benefit; marginal private cost
• B) marginal social benefit; marginal social cost
• C) marginal private benefit; marginal social benefit
• D) marginal social cost; marginal private cost

---

Definitions:

Monetary Bonuses

Financial rewards given to employees over and above their normal compensation, usually as a recognition of their performance or achievement.

Piece-Rate Pay

Piece-rate pay is a compensation system where workers are paid a fixed rate for each unit of production completed.

Stock Options

Financial instruments granted to employees, giving them the right to buy the company's stock at a fixed price in the future.

Sales Commissions

Financial rewards given to sales personnel based on the volume or value of sales they have achieved, serving as an incentive.