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.At the socially optimum 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.At the socially optimum 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

At the socially optimum amount of land dedicated to the public park, the marginal social benefit equals the marginal social cost. From the table, the socially optimum amount of land is where Q= 150 acres. At this quantity, the marginal social cost is $150. Therefore, the answer is B.

Use the Following to Answer Question