Marginal social cost is the
A) price a consumer pays for one more unit of a good.
B) cost a producer incurs producing one more unit of a good.
C) cost of producing one more unit of a good that falls on someone other than the producer.
D) sum of the cost a producer incurs from producing one more unit of a good plus the cost of producing one more unit of a good that falls on someone other than the producer.
E) same as marginal cost only if there is an external cost when the good is produced.
Question 2
Fill in the blank: The Players Union went on strike against the NBA during the 1998-1999 season, canceling games for weeks.
Other things constant, the strike and subsequent cancellation of games would tend to ________ the price elasticity of demand for hockey tickets during the same period the NBA games were canceled. A) worsen
B) preserve
C) increase
D) decrease
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