If a Good Has an External Cost, Then the Marginal

question 13

Multiple Choice

If a good has an external cost, then the marginal private cost curve

• A) lies below the marginal social cost curve.
• B) lies above the marginal social cost curve.
• C) is negative.
• D) is the same as the marginal external cost curve.

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Definitions:

Dualistic

Pertaining to a theory or concept that divides a subject into two opposed or contrasted aspects or entities.

Reflect on Self-Thought

The process of introspection, examining one's own thoughts, beliefs, and cognitive processes.

Post-Formal Cognitive

A stage of cognitive development that goes beyond Piaget's formal operational stage, characterized by the ability to deal with complex situations and understand that knowledge can be relative.

Self-Determination

The ability of an individual to make choices and govern their own life.