Homework Clinic
Social Science Clinic => Economics => Topic started by: lidoalex on Jun 29, 2018
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In a market with positive externalities, the market equilibrium price will be less than the efficient equilibrium price.
Indicate whether the statement is true or false
Question 2
Refer to Figure 5-15. The current market equilibrium output is partly the result of overfishing. In that case, what does S2 represent?
A) the private marginal cost of harvesting salmon
B) the private marginal benefit of harvesting salmon
C) the social marginal cost of harvesting salmon
D) the social marginal benefit of harvesting salmon
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Answer to Question 1
TRUE
Answer to Question 2
C