Marginal social cost is equal to
A) the amount people who buy a product pay for another unit.
B) whatever producers have to pay to produce output.
C) the sum of marginal private cost and the marginal external cost.
D) the average of marginal private cost and the marginal external cost.
E) None of the above answers is correct.
Question 2
A truly voluntary exchange
A) has nothing to do with values, only with things.
B) is always an exchange of equal values.
C) is not an exchange of equal values.
D) is usually an exchange of equal values.
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