When There Is a Marginal External ________ Producers Take Account

question 54

Essay

When there is a marginal external ________ producers take account only of marginal private cost and produce ________ than the efficient quantity.
A) cost; more
B) cost; less
C) benefit; more
D) benefit; less
E) increase; more

• A) cost; more
• B) cost; less
• C) benefit; more
• D) benefit; less
• E) increase; more

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Definitions:

Manufacturing Tools

Instruments, machines, or related items used in the manufacturing process to produce goods and products.

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Refers to products, technologies, or methods that are out-of-date or no longer in use.

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A loan where interest is calculated only on the principal amount, not on accumulated interest.

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The financial benefits that accrue to a business when leasing assets as opposed to purchasing them, often considered in terms of cost savings and tax advantages.