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rsteel rsteel
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2 years ago
If pollution is associated with the production of some good, then

▸ the price of the good is equal to firms' marginal private cost.

▸ too little of the good is being produced by the firm.

▸ the marginal social cost is less than the marginal social benefit.

▸ marginal social cost minus marginal private cost is positive.

▸ marginal social cost minus marginal private cost is negative.
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Microeconomics

Microeconomics


Edition: 17th
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nnennennenne
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