Answer to Question #52974 in Microeconomics for Yana

Question #52974
TRUE/FALSE 1. When externalities exist, economic efficiency is achieved when marginal private benefit equals marginal private cost. 2. Reducing pollution to zero emissions would be socially efficient. 3. The economically efficient car is the one with the lowest emissions. 4. Competitive firms consider private costs, but disregard external costs, when making their economic decisions.
1
Expert's answer
2015-08-03T00:00:42-0400
1. When externalities exist, economic efficiency is achieved when marginal private benefit equals marginal private cost - true.
2. Reducing pollution to zero emissions would be socially efficient - true.
3. The economically efficient car is the one with the lowest emissions - false 
4. Competitive firms consider private costs, but disregard external costs, when making their economic decisions - false.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS
paypal