If a market has no externalities, then marginal private cost:.....?
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02-20-2014, 12:45 AM
Post: #1
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If a market has no externalities, then marginal private cost:.....?
If a market has no externalities, then marginal private cost:..
A - exceed marginal social costs B - equal marginal social costs C - are below marginal social costs D - intersect marginal social costs Ads |
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02-20-2014, 12:59 AM
Post: #2
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B--The equality of price with social marginal cost, by aligning the interest of the buyer with the interest of the community as a whole, is a necessary condition for economically efficient resource allocation.
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02-20-2014, 01:13 AM
Post: #3
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B - because externalities occur when marginal private cost is either more or less than marginal social cost. When they are equal, there are no externalities.
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