In the Case of a Negative Externality, the Entire Marginal

question 62

Multiple Choice

In the case of a negative externality, the entire marginal social cost curve lies

• A)below the entire marginal private cost curve by the amount of the external costs associated with the negative externality.
• B)below the entire demand curve by the amount of the external costs associated with the negative externality.
• C)above the entire marginal private cost curve by the amount of the external costs associated with the negative externality.
• D)above the entire demand curve by the amount of the external costs associated with the negative externality.
• E)none of the above

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