MCQOPTIONS
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| 1. |
In the case of a negative externality, the social marginal cost will |
| A. | exceed the private marginal cost. |
| B. | be equal to private marginal cost. |
| C. | fall short of private marginal cost. |
| D. | bear no significant relation to private marginal cost. |
| Answer» B. be equal to private marginal cost. | |