suppose that a fraternity has a party late at night with loud music. next door t

Question

suppose that a fraternity has a party late at night with loud music. next door to the fraternity is a dorm 2 points Save Answe Suppose that a fraternity has a party late at night with loud music. Next door to the fraternity is a dorm where students are trying to study for final exams, but their quiet study time is disrupted by the fraternity party Because the party is imposing aexternality on students in the donn, the marginal social cost is_ Negative: greater than the marginal private cost Negative; less than the marginal social benefit Positive, greater than the marginal private cost Positive, less than the marginal social benefit

Explanation / Answer

The correct option is (a).

It creates negative Externalities.and social benifit is greater than marginal private cost.

Be in the case of negative externalities

Social cost= marginal private cost+ marginal external cost.

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