When private costs equal social costs:
A)negative production externalities are not present in the market.
B)positive consumption externalities are present in the market.
C)the external cost must be small relative to the private cost in the market.
D)no externality of any kind is present in the market.

Question

Quizplus · Accepted Answer

When private costs equal social costs, it means that there are no external costs or benefits affecting third parties, indicating the absence of negative production externalities.

When Private Costs Equal Social Costs