Author Question: The marginal social cost of production is the A) marginal private cost plus the marginal external ... (Read 152 times)

clippers! · **on:** Jun 29, 2018

The marginal social cost of production is the

A) marginal private cost plus the marginal external cost.
B) same as the marginal cost of any externality.
C) total cost of any externality.
D) marginal private cost minus the marginal external cost.

Question 2

In the market for bananas, the price is 2.00 a bunch. An increase in the supply of bananas decreases the price of bananas and ________.

A) the quantity supplied increases because the price falls
B) increases the demand for bananas
C) increases the quantity of bananas demanded
D) creates a shortage of bananas