If a Good Has an External Cost,then the Marginal Private

question 252

Multiple Choice

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

• A) lies below then the marginal social cost curve.
• B) lies above the marginal social cost curve.
• C) lies below the horizontal axis.
• D) is the same as the marginal external cost curve.
• E) is undefined because the firms' costs are not equal to the social costs.

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Definitions:

Insanity Defense

A legal defense strategy in which the defendant claims they were incapable of understanding the nature or wrongfulness of their actions due to mental illness at the time of the crime.

Acts of Passion

Behaviors driven by strong emotions or desires, often without consideration for the consequences.

Durham Rule

Legal principle stating that the presence of a mental disorder is sufficient to absolve an individual of responsibility for a crime.

American Law Institute (ALI) Rule

A guideline used in some jurisdictions for determining legal insanity, which considers whether a defendant lacks the capacity to understand the wrongfulness of their actions.