If the marginal social cost of a good equals the marginal private cost of the good, then the marginal external cost of the good
A) is zero.
B) equals the marginal social cost.
C) equals the marginal social benefit.
D) equals the marginal private benefit.

Question

Quizplus · Accepted Answer

The marginal external cost is the difference between the marginal social cost and the marginal private cost. If the marginal social cost equals the marginal private cost, then the marginal external cost is zero.

If the Marginal Social Cost of a Good Equals the Marginal