Relating to the Economics in Practice on page 332: If a company that is responsible for an environmental disaster does not end up paying the entire cost of the damage it created, the marginal social cost will be ________ the sum of the marginal costs of production.

Question

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The marginal social cost includes both the private cost of production and the external costs, such as environmental damage. If the company does not pay for the entire damage, the marginal social cost will be greater than the sum of the marginal costs of production.

Relating to the Economics in Practice on Page 332: If