In the Following, Discuss Whether Marina Is Treating Relevantly Similar

question 32

Short Answer

In the following, discuss whether Marina is treating relevantly similar cases in sufficiently similar fashions; identify instances in which the cases are not relevantly similar.
Marina instructs her children to always be truthful but lies to her young daughter when the daughter asks if her (the daughter's) illness is running up large medical bills.

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Definitions:

Marginal External Cost

Increase in cost imposed externally as one or more firms increase output by one unit.

Socially Optimal Output

The level of production or output that is most beneficial for society as a whole, considering both production costs and externalities.

Market Price

Price prevailing in a competitive market.

Dynamic Inefficiencies

Inefficiencies that occur over time due to factors such as technological changes, market adjustments, or policy shifts, affecting long-term economic performance.