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Each mile that we drive our cars produces a negative externality for others because of the pollution and congestion we produce. Suppose individuals collectively drive
Each mile that we drive our cars produces a negative externality for others because of the pollution and congestion we produce. Suppose individuals collectively drive M miles. Which of the following statements correctly describes the relationship between benefits and costs at this level of total output. Group of answer choices MPB = Marginal Social Cost (MSC) Total Private Benefits = Total Private Cost MSC > MPB Marginal Private Benefits (MPB) = Marginal External Cost (MEC) Total Private Benefits = Total External Cost
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