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Sellers may choose not to sell in certain markets if:

there are technological spillovers in the production of a good.



the social cost of production exceeds the private cost of production.



it is possible to practice price discrimination against customers.



the social cost of production is lower than the private cost of production.



buyers are unable to perceive the high quality of their goods.

1 Answer

3 votes

Answer:

the social cost of production exceeds the private cost of production.

Step-by-step explanation:

The cost of natural resources for which the firms are not required to pay, for example, river, lake, atmosphere, etc. The use of public utility services such as roadways, drainage systems, etc. The cost of 'disutility' created through pollution (air, water, noise, environment).

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