Solved

-Refer to Figure 15-5

Question 122

Multiple Choice

-Refer to Figure 15-5. 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 D<sub>2</sub> represent? A) the demand curve reflecting external benefits B) the demand curve reflecting social benefits C) the demand curve reflecting private benefits D) the demand curve reflecting the sum of social and external benefits
-Refer to Figure 15-5. If, because of an externality, the economically efficient output is Q2 and not the current equilibrium output of Q1, what does D2 represent?


A) the demand curve reflecting external benefits
B) the demand curve reflecting social benefits
C) the demand curve reflecting private benefits
D) the demand curve reflecting the sum of social and external benefits

Correct Answer:

verifed

Verified

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

Related Questions

Q2: The cost borne by a producer in

Q33: Figure 15.2 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1015/.jpg" alt="Figure 15.2

Q43: The efficient output level of a public

Q44: Figure 15.6 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1015/.jpg" alt="Figure 15.6

Q90: One problem with using a command-and-control approach

Q120: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4183/.jpg" alt=" -Refer to Figure

Q147: Figure 15.4 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1015/.jpg" alt="Figure 15.4

Q161: If the social benefit of consuming a

Q227: An externality is an example of a

Q254: Which of the following criteria should be