If a Government Action Is Designed to Achieve Efficiency,then the Action

question 91

Multiple Choice

If a government action is designed to achieve efficiency,then the action must have the market produce the amount of output so that the

• A) marginal private cost equals the marginal private benefit.
• B) marginal social cost equals the marginal social benefit.
• C) marginal external cost equals the marginal external benefit.
• D) marginal private cost equals the tax.
• E) marginal social benefit exceeds the marginal social cost by as much as possible.

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Definitions:

Share Ownership

The holding of stock in a company by individuals or entities, representing a claim on part of the corporation's assets and earnings.