Refer to the shaded area on the graph to the right. The social cost of common access is the area of the triangle below the marginal social cost curve and above the demand curve between the efficient quantity and the actual quantity. Cost (dollars per pound) Marginal Social Cost The yellow triangle can be broken into two separate right triangles: the larger upper triangle has area $5.473 500 and the much smaller lower triangle has area $61,500. Together they sum to $5,535,000. 3.11 Private Cost 0.44 0.41 Demand 9.35 13.45 F Crawfish catch (millions of vounds) OK

Refer to the shaded area on the graph to the right. The social cost of common access is the area of the triangle below the marginal social cost curve and above the demand curve between the efficient quantity and the actual quantity. Cost (dollars per pound) Marginal Social Cost The yellow triangle can be broken into two separate right triangles: the larger upper triangle has area $5.473 500 and the much smaller lower triangle has area $61,500. Together they sum to $5,535,000. 3.11 Private Cost 0.44 0.41 Demand 9.35 13.45 F Crawfish catch (millions of vounds) OK

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section: Chapter Questions

Problem 3PA: Greater consumption of alcohol leads to more motor vehicle accidents and, thus, imposes costs on...

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