When There Are External Costs,then the Maximum Social Welfare Occurs

question 119

Multiple Choice

When there are external costs,then the maximum social welfare occurs where marginal revenue equals:

• A) Private marginal cost.
• B) Social marginal cost.
• C) The minimum of the average cost curve.
• D) Social marginal benefit.

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Definitions:

Time-Out

A disciplinary technique used to remove a child from an environment where inappropriate behavior has occurred, to encourage reflection and calm down.

Instrumental Aggression

Hurtful behavior that is intended to get something that another person has.

Retaliation

A form of response aimed at returning harm for harm; often used in contexts of conflict or competition, whether personal, legal, or military.