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 that the marginal private benefit that any one individual in the community gets from parks is close to 0.If 1 acre is dedicated to the park,the park is _____ from a social perspective.
A)too large
B)the socially optimum size
C)too small
D)the efficient size

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 that the marginal private benefit that any one individual in the community gets from parks is close to 0.If 1 acre is dedicated to the park,the park is _____ from a social perspective.
A)too large 
B)the socially optimum size 
C)too small 
D)the efficient size

Quizplus · Accepted Answer

Since parks provide positive externalities, dedicating only 1 acre is likely too small from a social perspective, as the marginal social benefit exceeds the marginal social cost.

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