A bottle of beer costs $1; beer breweries do not pollute; and drunk drivers can cause accidents. This means that (select one) The $1 includes private costs, and there are no social costs The $1 includes both the private and the social costs
The $1 includes the private but not the social costs There is no market failure Explain your answer briefly:
A bottle of beer costs $1; beer breweries do not pollute; and drunk drivers can cause accidents. This means that (select one) The $1 includes private costs, and there are no social costs The $1 includes both the private and the social costs The $1 includes the private but not the social costs There is no market failure Explain your answer briefly:
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter11: Public Goods And Common Resources
Section: Chapter Questions
Problem 2CQQ
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Economics
- A bottle of beer costs $1; beer breweries do not pollute; and drunk drivers can cause accidents. This means that (select one)
- The $1 includes private costs, and there are no social costs
- The $1 includes both the private and the social costs
- The $1 includes the private but not the social costs
- There is no market failure
Explain your answer briefly:
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