Economics 9708 · AS & A Level · Economic methodology

Economic methodology — practice question

Which of the following statements is correct?

  • Amarginal social benefit = marginal private benefit – marginal external benefit
  • Bmarginal social cost = marginal private cost + marginal external cost
  • Cnegative externality = marginal social benefit – marginal social cost
  • Dpositive externality = marginal private benefit

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