If Drivers Decide to Make Phone Calls Without Considering the Costs

question 154

Multiple Choice

If drivers decide to make phone calls without considering the costs imposed on others,the:

• A)number of phone calls made while driving will be more than the socially optimal quantity.
• B)number of phone calls made while driving will be fewer than the socially optimal quantity.
• C)marginal social cost curve will lie below the marginal cost of production curve.
• D)marginal social benefit curve will lie below the marginal social cost curve.

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