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:

Decrease in Demand

A reduction in consumers' willingness or ability to buy a product at any given price.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level in a given period.

Market Quantity Demanded

Market quantity demanded is the total amount of a good or service that consumers are willing and able to purchase at a given price over a specific period.

Chocolate-Covered Peanuts

A confection made by coating peanuts in chocolate, combining the crunchiness of peanuts with the sweetness of chocolate.