If the Social Benefit Is Greater Than the Private Benefit

question 14

Multiple Choice

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

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

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