Table 10-3

$$\begin{array} { | c | c | c | c | }
\hline \begin{array} { c }
\text { Quantity } \
\text { (Units) }
\end{array} & \begin{array} { c }
\text { Private Value } \
\text { (Dollars) }
\end{array} & \begin{array} { c }
\text { Private Cost } \
\text { (Dollars) }
\end{array} & \begin{array} { c }
\text { External Benefit } \
\text { (Dollars) }
\end{array} \
\hline 1 & 22 & 12 & 10 \
\hline 2 & 20 & 15 & 10 \
\hline 3 & 18 & 18 & 10 \
\hline 4 & 16 & 21 & 10 \
\hline 5 & 14 & 24 & 10 \
\hline 6 & 12 & 27 & 10 \
\hline
\end{array}$$
-Refer to Table 10-3. The market equilibrium quantity of output is
A)3 units.
B)4 units.
C)5 units.
D)6 units.

Question

Table 10-3
​
​
 $$\begin{array} { | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Quantity } \
\text { (Units) }
\end{array} & \begin{array} { c } 
\text { Private Value } \
\text { (Dollars) }
\end{array} & \begin{array} { c } 
\text { Private Cost } \
\text { (Dollars) }
\end{array} & \begin{array} { c } 
\text { External Benefit } \
\text { (Dollars) }
\end{array} \
\hline 1 & 22 & 12 & 10 \
\hline 2 & 20 & 15 & 10 \
\hline 3 & 18 & 18 & 10 \
\hline 4 & 16 & 21 & 10 \
\hline 5 & 14 & 24 & 10 \
\hline 6 & 12 & 27 & 10 \
\hline
\end{array}$$
-Refer to Table 10-3. The market equilibrium quantity of output is
A)3 units.
B)4 units.
C)5 units.
D)6 units.

Quizplus · Accepted Answer

The market equilibrium quantity of output is determined where private value equals private cost, which occurs at 3 units (Private Value = $18, Private Cost = $18).

Table 10-3 ​ ​ -Refer to Table 10-3

Table 10-3

-Refer to Table 10-3