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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. )
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Answered by Aled H. • Economics tutor
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Define the term public good and give me two examples of public goods.

A public good is a good or service which is both non-rival and non-excludable. Non rival means that one person consuming the good does not stop somebody else from consuming it. For example, cake is rival, as...
TC
Answered by Tim C. • Economics tutor
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Examine measures the government might use to restrict the monopsony power of supermarkets.

The measures that government might use to restrict the monopoly power of supermarkets would be introducing competition policy like for instance introducing new entrant into the market so not only one firm do...
AK
Answered by Akrit K. • Economics tutor
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Evaluate government policies that could be used to reduce income inequality and wealth inequality in a developed country of your choice. 25 marks

Essay plan: Distinction between income and wealth inequality 1st point: income inequality --> increase income tax --> why would this reduce income inequality? --> more tax revenue for government --&...
MF
Answered by María F. • Economics tutor
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What is the difference between law of diminishing returns to a factor and decreasing returns to scale?

The main difference is that the diminishing returns to a factor relates to the efficiency of adding a variable factor of production but the law of decreasing returns to scale refers to the efficiency of incr...
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Answered by Abigail C. • Economics tutor
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