The marginal external cost and marginal private cost
A) are all borne by the seller.
B) are opportunity costs.
C) when added, equal the sum of the marginal private benefit plus the marginal social benefit at equilibrium.
D) are regulated by the government.
E) must always be equal in equilibrium.

Question

Quizplus · Accepted Answer

Marginal external cost and marginal private cost are both opportunity costs because they represent the cost of foregone alternatives.

The Marginal External Cost and Marginal Private Cost