At the Market Output and Price for a Good Whose

question 64

Multiple Choice

At the market output and price for a good whose production causes pollution,

• A)pollution is eliminated
• B)the marginal social cost of production exceeds the marginal social benefit of production
• C)the private cost of production equals the private benefit of production
• D)the marginal social benefit of production equals the marginal social cost of production
• E)too little of the good is produced

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Definitions:

Income Tax Payable

The amount of income tax a company or individual owes to the government but has not yet paid.