MCQOPTIONS
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| 1. |
A positive consumption externality occurs when: |
| A. | the social marginal cost is greater than the private marginal cost |
| B. | the social marginal benefit is greater than the private marginal benefit |
| C. | the social marginal cost is greater than the private marginal benefit |
| D. | the social marginal cost is less than the private marginal cost |
| Answer» C. the social marginal cost is greater than the private marginal benefit | |