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The Following Graph Shows Market Equilibrium in the Presence of an Externality

Question 109

Multiple Choice

The following graph shows market equilibrium in the presence of an externality. The socially efficient price and level of output are:​ ​
Figure 17.2
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The following graph shows market equilibrium in the presence of an externality. The socially efficient price and level of output are:​ ​ Figure 17.2 ​ A) $6 and 50 units, respectively B) $12 and 50 units, respectively C) $12 and 40 units, respectively D) $6 and 40 units, respectively E) less than $6 and more than 50 units, respectively


A) $6 and 50 units, respectively
B) $12 and 50 units, respectively
C) $12 and 40 units, respectively
D) $6 and 40 units, respectively
E) less than $6 and more than 50 units, respectively

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