Alcohol generates a negative externality in consumption

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Suppose alcohol generates a negative externality in consumption. If so, then

1) the marginal social benefit of alcohol is less than the marginal private benefit

2) the marginal social cost of alcohol equals the marginal social benefit

3) the marginal social benefit of alcohol equals the marginal private benefit

4) the marginal social benefit of alcohol is greater than the marginal private benefit

Reference no: EM13697400

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