This Forum has been archived there is no more new posts or threads ... use this link to report any abusive content
==> Report abusive content in this page <==
Post Reply 
 
Thread Rating:
  • 0 Votes - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
The result of external costs is that social demand is_______ than market demand, and the socially optimal quan?
10-13-2012, 10:19 AM
Post: #2
 
D. Less; less

The existence of external costs implies that social costs are not factored into the price that consumers pay; the demand for the product for consumers is higher than that of society. This makes social demand less than market demand. The lower social demand would be at a quantity that is less than the higher market demand.

Ads

Find all posts by this user
Quote this message in a reply
Post Reply 


Messages In This Thread
[] - jerry w - 10-13-2012 10:19 AM

Forum Jump:


User(s) browsing this thread: 2 Guest(s)