If the Marginal Social Benefit of Consuming a Good or a Service

question 67

Multiple Choice

If the marginal social benefit of consuming a good or a service exceeds the marginal private benefit

• A)a negative externality exists.
• B)the market achieves economic efficiency.
• C)a positive externality exists.
• D)the sum of consumer surplus and producer surplus is maximized.

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Definitions:

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Regional Marketing Head

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