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AP Microeconomics
Unit 6 – Market Failure and the Role of Government
Topic 6.2
In a negative externality, the socially optimal quantity occurs when?
Marginal social benefit (MSB) equals marginal private cost (MPC).
Marginal private benefit (MPB) equals marginal social cost (MSC).
Marginal private benefit (MPB) equals marginal private cost (MPC).
Marginal social benefit (MSB) equals marginal social cost (MSC).
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AP Microeconomics - 6.2 Externalities
Key terms
Negative Externality
Socially Optimal Quantity
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Cram Mode
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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