Multiple Choice
When farmers raise hogs,there are a number of external costs.In particular,hogs generate methane gas.Without government regulation:
A) too few hogs will be raised.
B) the price of hogs will be less than the marginal social cost of the last hog sold.
C) the price of hogs will be less than the marginal benefit of the last hog sold.
D) the price of hogs will be less than the marginal cost of the last hog sold to the hog farmer who sold it.
Correct Answer:
Verified
Correct Answer:
Verified
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