If a Good Has an External Cost,then the Marginal Private

question 252

Multiple Choice

If a good has an external cost,then the marginal private cost curve

• A) lies below then the marginal social cost curve.
• B) lies above the marginal social cost curve.
• C) lies below the horizontal axis.
• D) is the same as the marginal external cost curve.
• E) is undefined because the firms' costs are not equal to the social costs.

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Definitions:

Merchandise

Goods or products that are purchased for resale to customers, typically found in a retail or wholesale environment.

Sales

The revenue earned from selling goods or services to customers.

Bank Credit Cards

Financial instruments issued by banks that allow users to borrow funds for purchases, subject to repayment terms and interest.

Cash Sales

Transactions where goods or services are purchased and paid for with cash at the time of the sale.