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Market Price as an Indicator of Marginal Social Benefit
In a competitive market, such as the global banana market, the price consumers are willing to pay for a good can be considered a reflection of its marginal social benefit (MSB). [6] This is because the price encapsulates the value that society places on consuming one more unit of that good.
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Ch.10 Market successes and failures: The societal effects of private decisions - The Economy 2.0 Microeconomics @ CORE Econ
The Economy 2.0 Microeconomics @ CORE Econ
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Market Price as an Indicator of Marginal Social Benefit
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