Multiple Choice
Firm XYZ produces paper products, which cost the company $100,000. However, the production of the paper results in air pollution. The cost of this negative externality is $6,000.What is the marginal social benefit (MSB) at the social equilibrium, which reflects higher social costs?
A) $106,000
B) $6,000
C) $94,000
D) $100,000
Correct Answer:
Verified
Correct Answer:
Verified
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