Which of the Following Is True of the Private Level

question 98

Multiple Choice

Which of the following is true of the private level of output of goods with negative externalities?

• A) The private level of output will be lower than the socially-optimal level.
• B) The private firm will produce that level of output where marginal social benefit equals
• C) The private firm will produce that level of output where marginal social cost equals marginal private benefit.
• D) The private level of output will be higher than the socially-optimal level.

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