Scenario 10-4
The demand curve for fire extinguishers slopes downward and the supply curve for fire extinguishers slopes upward. The production of the 500^th fire extinguisher entails the following:
• a private cost of $10;
• an external cost of $0;
• a private value of $9;
• an external benefit of $3.
-Refer to Scenario 10-4. What is the social value of the 500^th fire extinguisher?

Question

Quizplus · Accepted Answer

The Answer of Scenario 10-4 The demand curve for fire extinguishers slopes downward and the supply curve for fire extinguishers slopes upward. The production of the 500 th fire extinguisher entails the following: • a private cost of $10; • an external cost of $0; • a private value of $9; • an external benefit of $3. -Refer to Scenario 10-4. What is the social value of the 500^th fire extinguisher?

Scenario 10-4 the Demand Curve for Fire Extinguishers Slopes Downward and the and the Supply