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32264 32264
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6 months ago

If there is a negative externality, and the market output is 100 units more than the socially optimal output, then it follows that



▸

the external costs associated with the negative externality are greater than the marginal private costs.



▸

the external costs associated with the negative externality are less than the marginal private costs.



▸

there is market failure.



▸

any tax imposed on the production of the output will bring about the socially optimal output.



▸

none of the above

Textbook 
Economics

Economics


Edition: 12th
Author:
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carducbcarducb
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6 months ago
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