In the production of Good A, there are spillover benefits accruing to the public who may or may not be consumers of Good A. At the market equilibrium, the social benefit is * a. less than the social cost b. greater than the social cost c. equal to the social cost d. Uncertain but definitely less than private benefit e. Equal to private benefit
In the production of Good A, there are spillover benefits accruing to the public who may or may not be consumers of Good A. At the market equilibrium, the social benefit is * a. less than the social cost b. greater than the social cost c. equal to the social cost d. Uncertain but definitely less than private benefit e. Equal to private benefit
Chapter4: Markets In Action
Section: Chapter Questions
Problem 17SQ
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In the production of Good A, there are spillover benefits accruing to the public who may or may not be consumers of Good A. At the market equilibrium , the social benefit is *
a. less than the social cost
b. greater than the social cost
c. equal to the social cost
d. Uncertain but definitely less than private benefit
e. Equal to private benefit
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