If a Product Has an External Benefit,how Does Its Marginal

question 285

Multiple Choice

If a product has an external benefit,how does its marginal private benefit compare to its marginal social benefit?

• A) Marginal private benefit is less than marginal social benefit.
• B) Marginal private benefit is greater than marginal social benefit.
• C) At low quantities, marginal private benefit is less than marginal social benefit but at high quantities, marginal private benefit is greater than marginal social benefit.
• D) At low quantities, marginal private benefit is greater than marginal social benefit but at high quantities, marginal private benefit is less than marginal social benefit.
• E) Marginal private benefit cannot be compared to marginal social benefit.

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Definitions:

Union Rules

The set of regulations and agreements that govern the operations of labor unions and the behavior of their members.

Job Enrichment

Strategies to improve job satisfaction by adding more meaningful tasks, granting more control, and offering feedback to increase an employee's responsibility and growth.

Scanlon Plan

A type of employee incentive plan that focuses on sharing the cost savings or productivity gains with the workers.

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The feeling of possessorship and of being psychologically tied to an object, job, or workplace, which can influence attitudes and behaviors.