5) Consider a remote village with a limited, freely available water supply and no government intervention in the allocation of water. In this case, each individual has an incentive to use water until their A) social marginal cost is minimized. B) social marginal benefit is maximized. C) private and social marginal costs are equal. D) private marginal benefit is zero. E) private marginal cost is zero.

5) Consider a remote village with a limited, freely available water supply and no government intervention in the allocation of water. In this case, each individual has an incentive to use water until their A) social marginal cost is minimized. B) social marginal benefit is maximized. C) private and social marginal costs are equal. D) private marginal benefit is zero. E) private marginal cost is zero.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

5) Consider a remote village with a limited, freely available water supply and no
government intervention in the allocation of water. In this case, each individual has an
incentive to use water until their
A) social marginal cost is minimized.
B) social marginal benefit is maximized.
C) private and social marginal costs are equal.
D) private marginal benefit is zero.
E) private marginal cost is zero.
OC
OB
D
OA
OE

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