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caillacakes caillacakes
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5 years ago
The marginal principle ________ to private goods with external benefits because ________.

▸ does not apply; it is a principle that governs private markets with no externalities

▸ does apply; the efficient quantity is that quantity for which the marginal private benefit equals the marginal cost

▸ does apply; the efficient quantity is that quantity for which the marginal social benefit equals the marginal cost

▸ does not apply; the efficient quantity is a quantity greater than the quantity for which the marginal private benefit equals the marginal cost
Textbook 
Microeconomics: Principles, Applications, and Tools

Microeconomics: Principles, Applications, and Tools


Edition: 8th
Authors:
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RNIPPRNIPP
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caillacakes Author
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#2
5 years ago
Good timing, thanks!
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