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:

Terminal Buttons

Terminal buttons are the small knobs at the end of an axon that release chemicals called neurotransmitters, which convey signals across synapses to other neurons.

Neurotransmitters

Chemicals in the brain that transmit signals from one neuron to another, influencing various functions and moods.

Chemicals

Substances with a distinct molecular composition that are produced by or used in a chemical process.

Myelin Sheath

A fatty layer that envelops axons of some neurons, enhancing the speed at which nerve impulses are conducted.