If the marginal private cost of producing the fiftieth unit of a good is $3 and the marginal social cost of producing the fiftieth unit of the good is $5, then producing the good creates _____ externalities, and the marginal external cost is:
A) positive; $8.
B) positive; $2.
C) negative; $8.
D) negative; $2.
Correct Answer:
Verified
Q33: Suppose that the purchase of a good
Q34: Suppose that the consumption of a good
Q35: Suppose that the consumption of a good
Q36: The undesirable side effects that are felt
Q37: The use of modern insecticides in farms
Q39: If the marginal external cost of producing
Q40: If the production of a good involves
Q41: If the production of a good involves
Q42: The marginal private cost of producing a
Q43: If the marginal social cost of producing
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