Figure 4-9 Figure 4-9 shows a market with a negative externality.
-Refer to Figure 4-9.The private profit maximizing quantity for the firm is
A)Qa.
B)Qb.
C)Qb - Qd.
D)Qd.

Question

Figure 4-9  Figure 4-9 shows a market with a negative externality.
-Refer to Figure 4-9.The private profit maximizing quantity for the firm is
A)Qa. 
B)Qb. 
C)Qb - Qd. 
D)Qd.

Quizplus · Accepted Answer

The private profit maximizing quantity for a firm is typically where marginal cost equals marginal revenue, which is often represented as Qb in economic diagrams.

Figure 4-9 Figure 4-9 Shows a Market with a Negative