The Efficient Way to Deal with an External Cost Is

question 20

True/False

The efficient way to deal with an external cost is to let markets allocate resources without government intervention.

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Definitions:

Marginal Utility

Additional enjoyment or value experienced from consuming an extra unit of a good or service.

Marginal Utility

The extra pleasure or benefit a consumer receives from purchasing an additional unit of a product or service.

Utility Schedule

A table or graph that shows the total utility or satisfaction that a consumer derives from consuming various quantities of a good or service.

Marginal Utility

The incremental utility or joy received when one more unit of a good or service is consumed.