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If the production of a good causes an external cost, then the efficient quantity is A.equal to the quantity at which the marginal benefit equals
If the production of a good causes an external cost, then the efficient quantity is
- A.equal to the quantity at which the marginal benefit equals marginal cost.
- B.less than the quantity at which the marginal benefit equals the marginal cost.
- C.more than the quantity at which the marginal benefit equals the marginal cost.
- D.the quantity at which the marginal private benefit is greater than the marginal social benefit.
- E.None of the above answers is correct.
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