Use the following to answer question:
-(Table: Externalities from Parks)Use: Table: Externalities from Parks.The table shows the marginal social benefit and the marginal social cost of preserving various amounts of land in a city for a public park.Suppose that parks result in positive benefits to the community as a whole but the marginal private benefit that any one individual in the community gets from parks is close to 0.Without government intervention,at the amount of land dedicated to the public park the marginal social benefit will be:
A)$225.
B)$150.
C)$100.
D)$0.

Question

Use the following to answer question: 
-(Table: Externalities from Parks)Use: Table: Externalities from Parks.The table shows the marginal social benefit and the marginal social cost of preserving various amounts of land in a city for a public park.Suppose that parks result in positive benefits to the community as a whole but the marginal private benefit that any one individual in the community gets from parks is close to 0.Without government intervention,at the amount of land dedicated to the public park the marginal social benefit will be:
A)$225. 
B)$150. 
C)$100. 
D)$0.

Quizplus · Accepted Answer

Without government intervention, individuals will not consider the marginal social benefit, which is the highest at $225, when deciding on the amount of land for the park.

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