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The Social Marginal Cost of the Production of Snowmobiles

Question 8

Multiple Choice

The social marginal cost of the production of snowmobiles


A) is less than the marginal external cost of production.
B) is greater than the sum of the private marginal cost and external cost.
C) includes only the cost of the labour input.
D) includes the noise pollution imposed on those living near snowmobile trails.
E) includes only the opportunity cost of all capital equipment.

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