If a Product Has Zero External Costs, Then

question 83

Multiple Choice

If a product has zero external costs, then

• A) marginal social cost equals zero.
• B) marginal social cost is less than marginal private cost.
• C) marginal social cost equals marginal private cost.
• D) marginal social cost is greater than marginal private cost.
• E) We need more information to determine the relationship between marginal private cost and marginal social cost.

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