Economics 9708 · AS & A Level · 7.4

7.4 — practice question

The table gives the marginal costs of production and the marginal benefits of consumption. marginal private cost ($) marginal social cost ($) marginal private benefit ($) marginal social benefit ($) 100 150 150 200 What do these values illustrate?

  • Aa negative consumption externality
  • Ba positive production externality
  • CPareto optimality
  • Dresource misallocation

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