If the Marginal Social Cost of Producing a good is higher than the marginal private cost -what has happened?
A Negative Externality. For example, in the production of Fuel, the private cost of producing the good (i.e £1) many not take into account the social cost of production (e.g pollution, climate change ect. )
AH
Related Economics A Level answers
All answers ▸What will happen to the UK economy if investment increases?
Please identify and explain the 2 main factors that cause the downward sloping demand curve.
What are some common points I can use in 15 an 25 mark questions?
What is PED and how do we calculate it?