Without government intervention

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Reference no: EM131101602

Without government intervention, it is ___________ true that ___________ in equilibrium.

Aalways; private marginal benefit equals private marginal cost

B)sometimes; private marginal benefit equals private marginal cost

C)always; private costs equal private benefits

D)always; social marginal benefit equals social marginal cost

Suppose that a market is in equilibrium and there is no government intervention in the market. If the private marginal cost of producing an item is $4 and the social marginal cost of production is $6, what is the private marginal benefit of the item?

A) $2 B) $4 C) $6 D) $0

Reference no: EM131101602

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