If a good has an external cost, the A) unregulated competitive ...

[CBme]

If a good has an external cost, the
 
  A) unregulated competitive market outcome is efficient.
  B) marginal private cost reflects the external cost.
  C) unregulated competitive market outcome is inefficient.
  D) marginal social benefit is equal to the marginal social cost when the market is in equilibrium.
  E) external benefit must equal the external cost.

Question 2

Claudia went to a department store to buy a few things for her new house. She found out that several items in the store were on discount and decided to make the most of the deals offered.
 
  However, as she started using the things that she bought, she realized that many of these items were defective. This happened due to: A) the presence of positive externalities.
  B) the presence of negative externalities.
  C) asymmetric information.
  D) moral hazard.

[Madisongo23]

Answer to Question 1

C

Answer to Question 2

C

[CBme]

Correct answers!

[Madisongo23]

Great! Please up vote