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-(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.Without government intervention,at the amount of land dedicated to the public park the marginal social cost will be:
A)$225.
B)$150.
C)$100.
D)$0.

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.Without government intervention,at the amount of land dedicated to the public park the marginal social cost will be:
A)$225. 
B)$150. 
C)$100. 
D)$0.

Quizplus · Accepted Answer

Without government intervention, individuals will not consider the positive externalities (benefits to others) of the park, leading to no land being dedicated to the park, resulting in a marginal social cost of $0.

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