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:

Inventory Units

The quantity of individual items or products that a company holds in stock at any given time.

Cost Flow Assumption

An accounting method used to value the cost of goods sold and ending inventory.

Specific Identification

Specific Identification is an inventory valuation method where costs are assigned to individual items, allowing for precise cost determination of sold goods.

Cost Flow Assumption

An accounting approach to determine the value of remaining inventory and cost of goods sold, not necessarily reflecting the actual physical flow of goods.