If a Good Has Zero External Costs, Then

question 30

Multiple Choice

If a good has zero external costs, then

• A) marginal social cost is less than marginal private cost.
• B) marginal social cost equals marginal private cost.
• C) marginal social cost is greater than marginal private cost.
• D) We need more information to determine the relationship between private and social costs.

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Definitions:

Eating Disorder

A mental disorder characterized by abnormal eating habits that negatively affect a person's physical or mental health.

Self-induced Vomiting

is an unhealthy behavior often linked to eating disorders, where an individual purposely vomits to prevent weight gain or relieve discomfort.

Bulimia Nervosa

A condition in which a person develops a cycle of “bingeing,” or overeating enormous amounts of food at one sitting, and then using unhealthy methods to avoid weight gain.

Severe Depression

A psychological ailment manifested by an enduringly low mood or disinterest in hobbies, substantially interfering with normal life.