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    Exam 5: Externalities, Environmental Policy, and Public Goods
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    Figure 5-2 Figure 5-2 Shows a Market with a Negative
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Figure 5-2 Figure 5-2 Shows a Market with a Negative

Question 160

Question 160

Multiple Choice

Figure 5-2 Figure 5-2   Figure 5-2 shows a market with a negative externality. -Refer to Figure 5-2. The size of marginal external costs can be determined by A)  S<sub>2</sub> + S<sub>1</sub><sub> </sub>at each output level. B)  S<sub>2</sub><sub> </sub>- S<sub>1</sub><sub> </sub>at each output level. C)  the supply curve S<sub>2</sub>. D)  the supply curve S<sub>1</sub>. Figure 5-2 shows a market with a negative externality.
-Refer to Figure 5-2. The size of marginal external costs can be determined by


A) S2 + S1 at each output level.
B) S2 - S1 at each output level.
C) the supply curve S2.
D) the supply curve S1.

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