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The Following Figure Shows the Market Supply and Demand of a Good

Question 145

Multiple Choice

The following figure shows the market supply and demand of a good whose production entails a $2 negative externality per unit.
The following figure shows the market supply and demand of a good whose production entails a $2 negative externality per unit.    -Refer to the figure above.The socially optimal quantity of this good should be ________ units. A)  60 B)  70 C)  80 D)  100
-Refer to the figure above.The socially optimal quantity of this good should be ________ units.


A) 60
B) 70
C) 80
D) 100

Correct Answer:

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