For example, if a production company and pollute without paying any costs for damage caused by pollution, it will probably create more optimal level of output of society. Since the company only pays for the costs of producing or marginal private services, it will generate the private marginal cost equals the marginal personal interests. But when there is the presence of the external factors, the marginal private cost is not the same as the marginal social cost.
đang được dịch, vui lòng đợi..
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