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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 152

Question 152

Multiple Choice

Figure 5-2 Figure 5-2   Figure 5-2 shows a market with a negative externality. -Refer to Figure 5-2. The true marginal cost of the last unit produced is represented by the price A)  P<sub>a</sub><sub>.</sub> B)  P<sub>b</sub><sub>.</sub> C)  P<sub>c</sub><sub>.</sub> D)  P<sub>f</sub><sub>.</sub> Figure 5-2 shows a market with a negative externality.
-Refer to Figure 5-2. The true marginal cost of the last unit produced is represented by the price


A) Pa.
B) Pb.
C) Pc.
D) Pf.

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