Asked by
Narinder Singh
on Nov 05, 2024Verified
If the government taxes a steel company by an amount equal to the damages of each marginal ton of steel, then the steel company's marginal cost curve is the same as the marginal
A) damage cost curve.
B) social cost curve.
C) private cost curve.
D) benefit cost curve.
Marginal Cost Curve
A graphical representation showing how the cost of producing one more unit of a good changes as production volume increases.
Marginal Social Cost
The total cost to society of producing one additional unit of a good or service, including both direct costs and any adverse impacts on third parties.
- Differentiate among private, social costs, and gains when externalities are present.
- Detail the manner in which externalities lead to an allocation of resources that is not efficient when governmental measures are not in place.
Verified Answer
KF
Learning Objectives
- Differentiate among private, social costs, and gains when externalities are present.
- Detail the manner in which externalities lead to an allocation of resources that is not efficient when governmental measures are not in place.
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