In the Case of a Negative Externality,the Social Marginal Cost

question 32

Multiple Choice

In the case of a negative externality,the social marginal cost will

• A)exceed the private marginal cost.
• B)be equal to private marginal cost.
• C)fall short of private marginal cost.
• D)bear no significant relation to private marginal cost.

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Definitions:

Interest Rate

The percentage of a sum of money charged by a lender to a borrower for the use of the money.

APR

Annual Percentage Rate, the yearly interest rate charged to borrowers, including fees and other costs, providing a complete picture of the loan's cost.

Periodic Rate

The interest rate for a specific period of time, often related to credit cards or loans, which can be monthly, quarterly, etc.

APR

Annual Percentage Rate, a measure of the cost of credit, expressing the yearly interest rate.