When Marginal Private Benefit Is Equal to Marginal Private Cost

question 175

Multiple Choice

When marginal private benefit is equal to marginal private cost,

• A)the activity in question generates no negative externality.
• B)all negative externalities have been internalized.
• C)all positive externalities have been internalized.
• D)all of the above
• E)a or b

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Definitions:

Material Success

Achievements or prosperity largely measured by the accumulation of wealth, possessions, and physical assets.

Great Leader

A person who possesses exceptional leadership qualities, inspiring vision, and the ability to motivate and guide people toward successful achievements.

Theory Relativistic

A perspective suggesting that the validity of certain theoretical propositions is relative to the framework within which they are analyzed.

Unquantifiable

Describes something that cannot be measured or quantified in numerical terms, often due to its subjective or abstract nature.