Business, 20.03.2022 07:40 2022maldonadoleonel
Marginal production of gasoline has a private cost of $3.10, a social cost of $3.55, and a value to consumers of $3.70. From the given information, it is apparent that
a. the production of gasoline involves a negative externality, so the market will produce a smaller quantity of gasoline than is socially desirable.
b. the production of gasoline involves a negative externality, so the market will produce a larger quantity of gasoline than is socially desirable.
c. the production of gasoline involves a positive externality, so the market will produce a smaller quantity of gasoline than is socially desirable.
d. the production of gasoline involves a positive externality, so the market will produce a larger quantity of gasoline than is socially desirable.
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Marginal production of gasoline has a private cost of $3.10, a social cost of $3.55, and a value to...
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