The Marginal Private Cost Curve (MC)is a Positively-Sloped Straight Line

question 57

Multiple Choice

The marginal private cost curve (MC) is a positively-sloped straight line starting at the origin. If marginal external cost increases as output increases, then the marginal social cost curve is a positively-sloped straight line

• A)parallel to and above the MC curve.
• B)parallel to and below the MC curve.
• C)starting at the origin, above the MC curve, and with a slope greater than the MC curve.
• D)starting at the origin, below the MC curve, and with a slope less than the MC curve.
• E)starting above the origin, with a slope less than the MC curve.

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Definitions:

Parameter

A parameter is a numerical characteristic of a population, such as its mean or standard deviation, as opposed to a statistic of a sample.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data.

Outliers

Observations in a dataset that are significantly distant from the other observations, potentially indicating a measurement error or a different population.

Parameter

A numerical characteristic that describes a statistical population, such as a mean or standard deviation.