If a product has zero external costs, then A) marginal social ...

[geodog55]

If a product has zero external costs, then
 
  A) marginal social cost equals marginal private cost.
  B) marginal social cost is greater than marginal private cost.
  C) marginal social cost is less than marginal private cost.
  D) marginal social cost equals zero.
  E) We need more information to determine the relationship between marginal private cost and marginal social cost.

Question 2

If the base year CPI market basket costs 250 and next year the CPI market basket costs 275, what is next year's CPI?
 
  What will be an ideal response?

[jackie]

Answer to Question 1

A

Answer to Question 2

The CPI equals 100  (275/250 ) = 110.

[geodog55]

YES! Correct, THANKS for helping me on my review

[ghepp]

Thanks for the timely response, appreciate it