If drivers decide to make phone calls without considering the costs imposed on others. the:

8. If drivers decide to make phone calls without considering the costs imposed on others, the: a. marginal social cost curve will lie below b. the marginal cost of production curve. marginal social benefit curve will lie below c. the marginal social cost curve. number of phone calls made while driving will be fewer than the socially optimal quantity. d. number of phone calls made while driving will be more than the socially optimal quantity.

Answer

This is the case of social cost or external cost which is not taken into account while deciding optimum level of call. Thus, Drivers should not make call while driving and these call should be limited to reach optimum level of call.

Thus, right answer is (d)

Leave a Comment