If a Good Has Zero External Costs, Then

question 145

Multiple Choice

If a good has zero external costs, then

• A) marginal social cost equal marginal private cost.
• B) marginal social cost is greater than marginal private cost.
• C) marginal social cost is less than marginal private cost.
• D) we need more information to determine the relationship between private and social costs.

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Definitions:

Knuckles

The joints of the fingers which are visible when the hand is clenched, serving as points of flexion for the fingers.

Primate Evolution

The evolutionary process that led to the emergence of anatomically modern humans, starting with the primordial primate species.

Fossilization

The process by which living organisms are preserved as fossils, involving the replacement of organic material with minerals over time.

Anthropoid Ancestor

The common ancestor of both apes and humans, belonging to the primate group known as anthropoids that exhibit characteristics like upright posture and increased brain size.