Author Question: Each of the following provides incentives to reduce a negative externality except: a. a merger with ... (Read 71 times)

Yolanda · **on:** Jul 1, 2018

Each of the following provides incentives to reduce a negative externality except:
a. a merger with affected firms.
b. subsidizing consumption of the good being produced.
c. bargaining among firms.
d. taxation of the externality.

Question 2

In the case of a positive externality, social marginal cost will
a. exceed private marginal cost.
b. be equal to private marginal cost.
c. fall short of private marginal cost.
d. have no specific relation to private marginal cost.