If the marginal social benefit of a good exceeds the marginal social cost at the current monthly output, then:
A) it will be possible to make buyers of the good better off without harming sellers of the good.
B) it will be possible to make sellers of the good better off without harming buyers of the good.
C) both (a) or (b) are correct.
D) a reduction in monthly output will be required for efficiency.
Correct Answer:
Verified
Q20: The normative approach to public finance prescribes
Q21: Positive economics is:
A)an equity-based approach in which
Q22: If efficiency has been attained,
A)it will be
Q23: Points on a utility possibility curve represent:
A)a
Q24: Pareto efficiency between two consumers is achieved:
A)only
Q26: If the efficient output of a good
Q27: Diamonds are sold by a monopoly firm
Q28: If a government desires to increase production
Q29: Eggs are sold in a perfectly competitive
Q30: The extra benefit on one more unit
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents