For a Common Resource, Efficiency Requires That the _______ Equals

question 129

Multiple Choice

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

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

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Definitions:

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity supplied.

Price of Ethanol

The cost per unit of ethanol, an alcohol used as a fuel additive and in industrial processes.

Substitute in Production

A good or service that can be used in place of another in the production process, offering flexibility to producers in their inputs.

Demand for

The volume of a good or service that individuals are prepared and financially capable of buying across a range of prices throughout a certain period.