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:

Alcohol

A chemical compound that is organic in nature, identified by the presence of at least one hydroxyl group (-OH) linked to a carbon atom.

Splitting Tree

A graphical representation used in mathematics and computer science to describe the structure of an algorithm or a process that divides a problem into smaller parts recursively.

Trans

A descriptor in chemistry used to denote molecules where two substituents are on opposite sides of a double bond or a cycloalkane ring.

Cis

Describes an isomer where two substituents are on the same side of a double bond or ring structure.