Multiple Choice
If the marginal social cost of producing a good is $8 and the marginal external cost of producing it is $2, then the marginal private cost of producing the good is _____, and the production of the good creates a _____ externality.
A) $6; positive
B) $10; positive
C) $6; negative
D) $10; negative
Correct Answer:
Verified
Correct Answer:
Verified
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