In a market, social surplus is maximized if consumers' ...

[Zoey63294]

In a market, social surplus is maximized if consumers' willingness to pay for the good equals the ________.
 
  A) marginal private cost of producing the good
  B) marginal external cost of producing the good
  C) marginal social cost of producing the good
  D) opportunity cost of producing the good

Question 2

Mention some of the problems incurred by black markets.
 
  What will be an ideal response?

[lindahyatt42]

Answer to Question 1

C

Answer to Question 2

Some of the problems that black markets incur are as below:
1. When they involve goods and services that have been legally banned, the black market undermines the ban.
2. When black market transactions occur in markets for legal goods and services in order to avoid taxes or regulations, they put legitimate businesses at a disadvantage.
3. To compensate for the lost revenue, governments must levy higher taxes.
4. Criminals spend vast resources trying to elude the law, which is not an effective use of society's resources.

[Zoey63294]

TYSM

[kthug]

Thanks for the timely response, appreciate it