Multiple Choice
Which of the following statements is correct?
A) Marginal social cost is the share of marginal cost caused by an activity that is paid for by the persons who carry out the activity.
B) Marginal private cost is the share of marginal cost caused by an activity that is borne by persons other than those who carry out the activity.
C) Marginal social cost is the sum of marginal private cost and incidental cost.
D) Marginal private cost and incidental cost are one and the same.
Correct Answer:
Verified
Correct Answer:
Verified
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