Electricity has a negative production externality because _____. A. Its marginal benefit decreases as more of it
Question:
Electricity has a negative production externality because _____.
A. Its marginal benefit decreases as more of it is consumed.
B. The marginal private cost of producing it increases as more of it is produced.
C. The marginal social cost of producing it exceeds the marginal private cost of producing it.
D. A marginal external cost lowers the marginal benefit of consuming it.
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