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The Graph Shown Displays a Market with an Externality

Question 94

Multiple Choice

The graph shown displays a market with an externality. The graph shown displays a market with an externality. Which of the following statements is true?This shows a negative consumption externality.The efficient quantity is 7 units.The size of the externality is $12 per unit. A) I and III only B) III only C) II only D) I, II, and III Which of the following statements is true?This shows a negative consumption externality.The efficient quantity is 7 units.The size of the externality is $12 per unit.


A) I and III only
B) III only
C) II only
D) I, II, and III

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