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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