Use the table below to answer the following questions.
Table 16.2.1

-Refer to Table 16.2.1. Given in the table are the marginal private cost and the marginal social cost of the production of chemical fertilizer and the marginal social benefit from the consumption of fertilizer. Assume the market is perfectly competitive. If the market is unregulated, the marginal
A)social cost equals the marginal private benefit.
B)private cost is less than the marginal social benefit.
C)private cost equals the marginal social benefit.
D)social cost equals the marginal private cost.
E)private cost is greater than the marginal social benefit.

Question

Use the table below to answer the following questions.
Table 16.2.1
 
-Refer to Table 16.2.1. Given in the table are the marginal private cost and the marginal social cost of the production of chemical fertilizer and the marginal social benefit from the consumption of fertilizer. Assume the market is perfectly competitive. If the market is unregulated, the marginal
A)social cost equals the marginal private benefit. 
B)private cost is less than the marginal social benefit. 
C)private cost equals the marginal social benefit. 
D)social cost equals the marginal private cost. 
E)private cost is greater than the marginal social benefit.

Quizplus · Accepted Answer

The marginal private cost equals the marginal social benefit in a perfectly competitive market when the market is unregulated.

Use the Table Below to Answer the Following Questions