If a Negative Externality Is Associated with Burning Firewood

question 143

Multiple Choice

If a negative externality is associated with burning firewood:

• A) the marginal social cost of burning firewood falls short of its price.
• B) the marginal social cost of burning firewood is exactly equal to its price.
• C) less than the efficient amount of firewood for burning will be used each year.
• D) the marginal social cost of burning firewood exceeds the price of burning firewood.

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