Use the table below to answer the following questions.
Table 16.2.1

-Refer to Table 16.2.1. Given in the table are the marginal private cost and the marginal social cost of the production of chemical fertilizer and the marginal social benefit from the consumption of fertilizer. Under these circumstances,
A)there are positive externalities in this market.
B)there are negative externalities in this market, equal to $10 per unit.
C)there are no externalities in this market.
D)not enough information is provided to determine whether or not there are externalities.
E)there are negative externalities in this market, equal to $20 per unit.

Question

Use the table below to answer the following questions.
Table 16.2.1
 
-Refer to Table 16.2.1. Given in the table are the marginal private cost and the marginal social cost of the production of chemical fertilizer and the marginal social benefit from the consumption of fertilizer. Under these circumstances,
A)there are positive externalities in this market. 
B)there are negative externalities in this market, equal to $10 per unit. 
C)there are no externalities in this market. 
D)not enough information is provided to determine whether or not there are externalities. 
E)there are negative externalities in this market, equal to $20 per unit.

Quizplus · Accepted Answer

The Answer of Use the table below to answer the following questions.
Table 16.2.1
 
-Refer to Table 16.2.1. Given in the table are the marginal private cost and the marginal social cost of the production of chemical fertilizer and the marginal social benefit from the consumption of fertilizer. Under these circumstances,
A)there are positive externalities in this market. 
B)there are negative externalities in this market, equal to $10 per unit. 
C)there are no externalities in this market. 
D)not enough information is provided to determine whether or not there are externalities. 
E)there are negative externalities in this market, equal to $20 per unit.

Use the Table Below to Answer the Following Questions