The Marginal Social Cost, MSC, of Producing a Good or Service

question 37

Multiple Choice

The marginal social cost, MSC, of producing a good or service equals

• A) MC + MB.
• B) MC + marginal external cost.
• C) MB + marginal external benefit.
• D) MB + marginal external cost.

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Definitions:

Monopoly

A market structure characterized by a single seller who has exclusive control over a product or service.

Antitrust Law

Legal regulations designed to promote fair competition for the benefit of consumers, by preventing monopolies, cartels, and other practices that restrain free trade.

Interstate Commerce

Trade, traffic, or transportation involving the movement of goods or people across state lines, regulated by federal law.

Professional Baseball

A sport involving organized teams and leagues, recognized at a professional level for its athletes who are paid to play.