When does the marginal social cost of producing a good exceed the ...

[jazziefee]

When does the marginal social cost of producing a good exceed the marginal private cost of producing it?
 
  What will be an ideal response?

Question 2

Undistributed profits ________ counted as part of GDP because ________.
 
  A) are not; households are not paid by the firms
  B) are; they can be used to buy other goods
  C) are; they are considered income paid to households and loaned back to firms
  D) are not; they are considered an intermediate good
  E) are; firms are required to pay corporate income taxes on them

[Meganchabluk]

Answer to Question 1

If the production of a good generates a negative externality, the marginal social cost of producing the good exceeds the marginal private cost of producing it.

Answer to Question 2

C

[jazziefee]

Excellent

[diana chang]

YES! Correct, THANKS for helping me on my review