Figure 13-2 shows a market with a negative externality.
-Refer to Figure 13 -2. The private profit maximizing quantity for the firm is

Name: Figure 13-2 shows a market with a negative externality. -Refer to Figure 13 -2. The private profit maximizing quantity for the firm is A) Q d . B) Q a . C) Q b . D) Q b -Q d .
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Question

Figure 13-2 shows a market with a negative externality. -Refer to Figure 13 -2. The private profit maximizing quantity for the firm is A) Q_d. B) Q_a. C) Q_b. D) Q_b-Q_d.

Quizplus · Accepted Answer

The private profit-maximizing quantity for a firm is typically where marginal cost equals marginal revenue. In many diagrams, this is represented by Q_b.

Figure 13-2 Shows a Market with a Negative Externality