If the Marginal External Cost of Building a Children's Playground

question 23

Multiple Choice

If the marginal external cost of building a children's playground equals zero, then the i. marginal private cost equals the marginal social cost.
Ii. marginal social cost equals zero.
Iii. marginal private cost equals zero.

• A)i only
• B)ii only
• C)iii only
• D)ii and iii
• E)i and ii

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Definitions:

United States

A country in North America, comprising 50 states, a federal district, five major self-governing territories, and various possessions.

Germany

A country in Central Europe, known for its rich history, culture, and significant contributions to the fields of science, technology, and economy.

Import Substitution

An economic strategy aimed at reducing foreign dependency by local production of industrialized products.

Local Industries

Economic activities or sectors focused on producing goods or services predominantly catered to the domestic or regional market.