Relating to the Economics in Practice on page 330: If a company that is responsible for an environmental disaster does not end up paying the entire cost of the damage it created, the marginal social cost will be ________ the sum of the marginal costs of production.
A) less than
B) greater than
C) equal to
D) unrelated to

Question

Quizplus · Accepted Answer

When a company responsible for an environmental disaster does not pay the entire cost of the damage, the marginal social cost includes both the marginal costs of production and the unaccounted-for environmental damage costs. This makes the marginal social cost greater than just the sum of the marginal costs of production.

Relating to the Economics in Practice on Page 330: If