A Negative Externality Results from the Sale of Firewood in Competitive

question 13

Multiple Choice

A negative externality results from the sale of firewood in competitive markets. Then it follows that:

• A) the marginal private cost of firewood is less than its marginal social cost.
• B) the marginal private cost of firewood exceeds its marginal social cost.
• C) the marginal private benefit of firewood is less than its marginal social benefit.
• D) the marginal private benefit of firewood exceeds its marginal social benefit.

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Definitions:

Charitable

Related to the act of giving help, especially financial support, to those in need.

Virtues List

A compilation of moral and ethical qualities considered as positive traits and admired in a person.

Justice

The fair and equitable treatment of individuals, ensuring that rights are upheld and that decisions are made according to the rule of law and ethical standards.

Wisdom

The quality of having experience, knowledge, and good judgment.