If a Negative Externality Exists in a Market, the Marginal

question 264

Multiple Choice

If a negative externality exists in a market, the marginal

• A) private cost exceeds the marginal social cost.
• B) social cost exceeds the marginal private cost.
• C) private benefit exceeds the marginal social benefit.
• D) social benefit exceeds the marginal private benefit.

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Definitions:

Corporate Crimes

Illegal activities or offenses committed by individuals or organizations in the course of their corporate or professional capacities, often involving financial manipulation or environmental harm.

Social Status

An individual's position within a society, determined by various factors such as occupation, income, and education.

Punishment

The imposition of a penalty as retribution for an offense, often involving pain or loss to deter further wrongdoing.

Social Environment

The immediate physical and social setting in which people live or in which something happens or develops.