Figure 11.2.1 Chemical Fertilizer Market Marginal Social Marginal Private Marginal Social Output Benefit Cost Cost (units) (MSB) (MPC) (MSC) 0 $80 $0 $20 1 $70 $10 $30 2 $60 $20 $40 3 $50 $30 $50 4 $40 $40 $60 5 $30 $50 6 $20 $60 $70 $80 Figure 11.2.1 shows the marginal social benefit from using fertilizer and the marginal private cost and marginal social cost of producing fertilizer. The marginal private benefit is the same as the marginal social benefit. If the market is unregulated, the marginal ○ A. social cost equals the marginal private benefit. B. private cost equals the marginal social benefit. O C. social cost equals the marginal private cost. ○ D. private cost is less than the marginal social benefit. O E. private cost is greater than the marginal social benefit.
Figure 11.2.1 Chemical Fertilizer Market Marginal Social Marginal Private Marginal Social Output Benefit Cost Cost (units) (MSB) (MPC) (MSC) 0 $80 $0 $20 1 $70 $10 $30 2 $60 $20 $40 3 $50 $30 $50 4 $40 $40 $60 5 $30 $50 6 $20 $60 $70 $80 Figure 11.2.1 shows the marginal social benefit from using fertilizer and the marginal private cost and marginal social cost of producing fertilizer. The marginal private benefit is the same as the marginal social benefit. If the market is unregulated, the marginal ○ A. social cost equals the marginal private benefit. B. private cost equals the marginal social benefit. O C. social cost equals the marginal private cost. ○ D. private cost is less than the marginal social benefit. O E. private cost is greater than the marginal social benefit.
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter17: Externalities And The Environment
Section: Chapter Questions
Problem 13PAE
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Transcribed Image Text:Figure 11.2.1
Chemical Fertilizer Market
Marginal Social
Marginal Private
Marginal Social
Output
Benefit
Cost
Cost
(units)
(MSB)
(MPC)
(MSC)
0
$80
$0
$20
1
$70
$10
$30
2
$60
$20
$40
3
$50
$30
$50
4
$40
$40
$60
5
$30
$50
6
$20
$60
$70
$80
Figure 11.2.1 shows the marginal social benefit from using fertilizer and the marginal private cost and marginal social cost of producing fertilizer. The marginal
private benefit is the same as the marginal social benefit. If the market is unregulated, the marginal
○ A. social cost equals the marginal private benefit.
B. private cost equals the marginal social benefit.
O C. social cost equals the marginal private cost.
○ D. private cost is less than the marginal social benefit.
O E. private cost is greater than the marginal social benefit.
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