Each of the following provides incentives to reduce a negative ...

[Yolanda]

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.

[nital]

Answer to Question 1

b

Answer to Question 2

c

[Yolanda]

Gracias!

[pratush dev]

Thanks for the timely response, appreciate it