One Reason Why Property Rights Help Achieve an Efficient Level

question 194

Multiple Choice

One reason why property rights help achieve an efficient level of pollution is because property rights

• A) force the marginal private cost to equal the marginal social cost.
• B) force the marginal social cost to zero.
• C) force the marginal external cost to a lower level than marginal private cost.
• D) eliminate marginal private costs.
• E) change the marginal external cost so that they are equal to the marginal social benefit.

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Definitions:

Market Demand Curve

A graph representing the total quantity of a good or service demanded across different prices in a market.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for competition.

Barriers To Entry

Economic, procedural, or regulatory obstacles that prevent or hinder new competitors from easily entering an industry or area of business.

Number Of Sellers

The quantity of providers or sellers in a market, affecting competition and pricing dynamics.