In an Efficient Market Without Externalities

question 150

Multiple Choice

In an efficient market without externalities,

• A)price equals marginal private cost and is below marginal social cost.
• B)price equals marginal private cost and marginal social cost.
• C)price equals marginal private value and is below marginal external value.
• D)price equals marginal private value and marginal external value.

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Definitions:

Environmental Impact

The effect human activities have on the environment, including natural resources, wildlife, and ecosystems.

Canada

A country located in the northern part of North America, known for its vast landscapes, multicultural populations, and as the second largest country by total area.

Slash-And-Burn Cultivation

An agricultural method that involves cutting and burning of plants in a forest or woodland to create a field called a swidden.

Tropical Forests

Dense, warm, and wet forests found near the Equator, characterized by high biodiversity and a variety of flora and fauna.