In the Case of an External Cost, Marginal Private Cost

question 157

Multiple Choice

In the case of an external cost, marginal private cost:

• A) is equal to marginal social cost for all quantity levels.
• B) is less than marginal social cost for all quantity levels.
• C) is greater than marginal social cost for all quantity levels.
• D) and marginal social cost cannot be compared at any quantity.

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