If drivers decide to make phone calls without considering the costs imposed on others,the:
A)number of phone calls made while driving will be more than the socially optimal quantity.
B)number of phone calls made while driving will be fewer than the socially optimal quantity.
C)marginal social cost curve will lie below the marginal cost of production curve.
D)marginal social benefit curve will lie below the marginal social cost curve.

Question

Quizplus · Accepted Answer

If drivers are making phone calls without considering the costs imposed on others, they are likely not taking into account the negative externalities that their behavior creates, such as the risk of causing accidents or distracting other drivers. As a result, they will likely make more phone calls while driving than is socially optimal, leading to increased costs and risks for others on the road.

If Drivers Decide to Make Phone Calls Without Considering the Costs