If a Good Has an External Cost,the

question 104

Multiple Choice

If a good has an external cost,the

• A) unregulated competitive market outcome is efficient.
• B) marginal private cost reflects the external cost.
• C) unregulated competitive market outcome is inefficient.
• D) marginal social benefit is equal to the marginal social cost when the market is in equilibrium.
• E) external benefit must equal the external cost.

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