Table 10-4
-Refer to Table 10-4. The table represents a market in which
A)there is no externality.
B)there is a positive externality.
C)there is a negative externality.
D)The answer cannot be determined from inspection of the table.

Question

Table 10-4 
-Refer to Table 10-4. The table represents a market in which
A)there is no externality. 
B)there is a positive externality. 
C)there is a negative externality. 
D)The answer cannot be determined from inspection of the table.

Quizplus · Accepted Answer

The table shows that as the quantity of the good increases, the marginal social cost increases at a faster rate than the marginal private cost. This indicates that there is a negative externality associated with the production of the good.

Table 10-4 -Refer to Table 10-4. the Table Represents a Market in a Market