If the Social Cost Is Greater Than the Private Cost

question 98

Multiple Choice

If the social cost is greater than the private cost in a particular market,the private equilibrium will be at a quantity:

• A) equal to the socially optimal level.
• B) less than the socially optimal level.
• C) greater than the socially optimal level.
• D) greater than or less than the socially optimum level, depending on the size of the external costs.