To Maximize Social Welfare When There Are No Externalities,marginal Private

question 9

Multiple Choice

To maximize social welfare when there are no externalities,marginal private costs must be:

• A) equal to marginal social costs.
• B) less than marginal private benefits.
• C) equal to marginal private benefits
• D) greater than marginal private benefits.

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Definitions:

Contract

A legally binding agreement between two or more parties that is enforceable by law.

Undue Influence

Persuasion that is less than actual force but more than advice and that induces a person to act according to the will or purposes of the dominating party.

Threats

Expressions or actions indicating an intention to cause harm or force someone to do something against their will.

Reliance

The act of depending or counting on something or someone, often used in legal contexts to describe a situation where one party bases a decision on the assurances or promises of another.