Suppose electricity generates a negative externality in production If so, then A. the marginal social cost of electricity is less than the marginal private cost . B. the marginal social cost of electricity equals the marginal private cost . C. the marginal social benefit of electricity is less than the marginal private benefit . D. the marginal social cost of electricity equals the marginal social benefit. E. the marginal social cost of electricity is greater than the marginal private cost.
Suppose electricity generates a negative externality in production If so, then A. the marginal social cost of electricity is less than the marginal private cost . B. the marginal social cost of electricity equals the marginal private cost . C. the marginal social benefit of electricity is less than the marginal private benefit . D. the marginal social cost of electricity equals the marginal social benefit. E. the marginal social cost of electricity is greater than the marginal private cost.
Chapter14: Environmental Economics
Section: Chapter Questions
Problem 7SQ
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Question
Suppose electricity generates a negative externality in production
If so, then
A.
the marginal social cost of electricity is less than the marginal private
cost
.
B.
the marginal social cost of electricity equals the marginal private cost
.
C.
the marginal social benefit of electricity is less than the marginal private
benefit
.
D.
the marginal social cost of electricity equals the marginal social benefit.
E.
the marginal social cost of electricity is greater than the marginal private cost.
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