Multiple Choice
Use the following to answer questions:
Figure: Dishwashing Detergent
-(Figure: Dishwashing Detergent) Refer to the figure. Dishwashing detergent contains phosphates that harm marine life. According to this figure, which statement is TRUE?
A) The maximum willingness to pay for the 6th unit equals the private cost.
B) The social cost of the 9th unit is $9 while the value to consumers is $9, eliminating the gains from trade.
C) The maximum willingness to pay for the 12th unit equals $18, or the private cost plus the social cost.
D) The social cost of the 9th unit is $15 while the value to consumers is $9, creating a deadweight loss equal to $6.
Correct Answer:

Verified
Correct Answer:
Verified
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