If the Social Cost Is Greater Than the Private Cost

question 34

Multiple Choice

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

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

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