If a Good Has an External Cost, Then the Marginal

question 72

Multiple Choice

If a good has an external cost, then the marginal private cost curve

• A) lies below the marginal social cost curve.
• B) is negative.
• C) lies above the marginal social cost curve.
• D) is the same as the marginal external cost curve.

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Definitions:

Autonomy

The capacity and right of individuals to make their own choices and to act independently.

Independent Self

A self-concept characterized by prioritizing personal goals, values, and beliefs over the expectations and norms of social groups or collectives.

Interdependent Self

is a concept in psychology reflecting a self-view that emphasizes the importance of relationships and interconnectedness with others.

Reasoning Ability

The capability to think logically, solve problems, and make decisions based on available information.