To Make a Market Efficient in the Presence of a Negative

question 19

Multiple Choice

To make a market efficient in the presence of a negative externality,a tax could be imposed that is equal to the marginal

• A)social cost
• B)private benefit
• C)social cost minus marginal private cost
• D)social cost minus marginal private benefit
• E)private benefit minus marginal social benefit

---

Definitions:

Well Reasoned

An argument or decision that is logical, well thought out, and based on evidence or sound reasoning.

Demand Letter

A letter in which one party explains its legal position in a dispute and requests that the recipient take some action, such as paying money owed.

Contract

An agreement, based on a promise or an exchange of promises, that can be enforced in court.

Unauthorized Practice

The act of providing legal advice or representing someone in legal matters without the licensure or authorization to do so.