For a Common Resource, Efficiency Requires That the _______ Equals

question 59

Multiple Choice

For a common resource, efficiency requires that the _______ equals the _______.

• A) marginal social cost; marginal private cost
• B) marginal social benefit; marginal social cost
• C) marginal private benefit; marginal social benefit
• D) marginal private benefit; marginal private cost

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Definitions:

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specified period of time.

Price Controls

Government-imposed limits on the prices that can be charged for goods and services, often aimed at curbing inflation or protecting consumers.

Market Efficiency

A condition in which market prices fully reflect all available information, allowing for optimal allocation of resources without waste.

Non-price Factors

Elements that influence consumer decision making and market trends, such as product quality, brand loyalty, and consumer preferences, aside from the price.