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:

Long Run

A period where all inputs or factors of production can be varied, allowing full adjustment to changes in the market or economy.

Short Run

A period in economics where at least one input is fixed and cannot be changed by the firm.

Market Price

The price at which a good or service is offered in the marketplace, determined by supply and demand dynamics.

Units

Basic measurement or quantity of a product, used to track inventory, production, and sales in various contexts.