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marginal benefit curves

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When negative (or positive) externalities exist economists say that the market has failed to produce the right amount of the good at the right price. What do economist mean by this? How do they determine what the right amount of the good is?

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This job examines marginal benefit curves and other elements.

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The right amount of good is the efficient level of good achieved when marginal social cost is equal to the marginal social benefit. In the absence of any externality , marginal social cost(MSC) = marginal private cost (MPC) and ...

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