If a firm is not forced to take account of a negative externality it creates,it will produce the quantity at which
A) the marginal cost of production equals the marginal private benefit
B) the marginal cost of production equals the marginal social benefit
C) the marginal social cost of production the equals marginal private benefit
D) the marginal social cost of production equals the marginal social benefit
E) price equals marginal social benefit
Correct Answer:
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Q60: Pollution is a form of market failure
Q61: Because of the free rider problem
A)private solutions
Q62: Q63: In the presence of a negative externality Q64: Production involving a positive externality is inefficient. Q66: The marginal social cost (MSC) curve Q67: A typical market supply curve Q68: If production creates a negative externality,social welfare Q69: According to the Coase theorem, Q70: The free rider problem occurs when![]()
A)the
A) lies
A)is identical to
A)government intervention is
A)individual gainers
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