Solved

-Refer to Figure 15-1

Question 196

Multiple Choice

-Refer to Figure 15-1. If, because of an externality, the economically efficient output is Q<sub>2</sub> and not the current equilibrium output of Q<sub>1</sub>, what does S<sub>2</sub> represent? A) the market supply curve reflecting private cost B) the market supply curve reflecting social cost C) the market supply curve reflecting external cost D) the market supply curve reflecting implicit cost
-Refer to Figure 15-1. If, because of an externality, the economically efficient output is Q2 and not the current equilibrium output of Q1, what does S2 represent?


A) the market supply curve reflecting private cost
B) the market supply curve reflecting social cost
C) the market supply curve reflecting external cost
D) the market supply curve reflecting implicit cost

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q25: The demand curve for a public good

Q28: Figure 15.3 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1015/.jpg" alt="Figure 15.3

Q40: Figure 15.12 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1015/.jpg" alt="Figure 15.12

Q63: The social cost of cutting trees for

Q143: In economics, the optimal level of pollution

Q143: When there is a positive externality,<br>A) the

Q195: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4183/.jpg" alt=" -Refer to Figure

Q200: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4183/.jpg" alt=" -Refer to Figure

Q217: Which of the following represents the true

Q247: How does the construction of a market