Explain when
Explanation of Solution
When the marginal external cost (MEC) is zero, the marginal
Marginal social benefit (MSB): Marginal social benefit (MSB) is a high utility or satisfaction felt by an individual when they purchase an additional unit of a good or service.
Marginal social cost (MSC): Marginal social cost is the added cost spent for producing an extra output of a unit.
Marginal external benefit (MEB): The marginal external benefit refers to the amount of additional benefits obtained in the process of increasing one more unit of output to third party.
Marginal external cost (MEC): The marginal external cost refers to the amount of additional cost obtained in the process of increasing one more unit of output to third party.
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Chapter 30 Solutions
Economics (MindTap Course List)
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