If the social costs of an economic activity are $200 and the private costs are $200,then the external costs of the activity are ____,and market failure _______.

Name: If the social costs of an economic activity are $200 and the private costs are $200,then the external costs of the activity are ____,and market failure _______.
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Question

Quizplus · Accepted Answer

The external costs are calculated as the difference between social costs and private costs. Since both are $200, the external costs are $0, indicating no market failure.

If the Social Costs of an Economic Activity Are $200