Who counts the outside cost?
Compare private decisions with social costs and benefits, then explore taxes, subsidies, permits and bargaining. Solve 10 questions with worked answers.
A private trade can affect someone else
| At the private outcome | Amount |
|---|---|
| Lanterns sold | 40 |
| Harm per lantern | $20 |
| Total outside harm | $800 |
A private trade can affect someone else
Private cost and social cost
Exam coming up and social cost versus private cost still tangles?
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