A-LevelEconomicsGovernment microeconomic intervention9708/33 · Oct/Nov 2017 · Q21 Mark
The table shows the marginal costs of production and marginal benefits of consumption.
- 2marginal private cost () 100 marginal social cost () 150 marginal private benefit () 150 marginal social benefit () 200 What is demonstrated in these values? A a negative consumption externality B a positive production externality C Pareto optimality D resource misallocation[1]
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Mark scheme
Marking points from the official mark scheme (Oct/Nov 2017). The mark or mark type is shown in brackets.
- [1] D
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