Multiple Choice
If either the production or consumption of a good generates an external cost, then the:
A) social demand curve will lie to the right of the private demand curve.
B) social marginal cost curve will lie to the right of the private marginal cost curve.
C) social marginal cost curve will lie to the left of the private marginal cost curve.
D) social demand for the good will equal zero.
Correct Answer:

Verified
Correct Answer:
Verified
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