Use the following to answer question:
-(Table: Externalities from Parks)Use: Table: Externalities from Parks.The shows the marginal social benefit and the marginal social cost of preserving various amounts of land in a city for a public park.Suppose that parks result in positive benefits to the community as a whole but that the marginal private benefit that any one individual in the community gets from parks is close to 0.Without government intervention,the amount of land dedicated to the public park will be _____ acres.
A)0
B)1
C)3

Question

Use the following to answer question: 
-(Table: Externalities from Parks)Use: Table: Externalities from Parks.The shows the marginal social benefit and the marginal social cost of preserving various amounts of land in a city for a public park.Suppose that parks result in positive benefits to the community as a whole but that the marginal private benefit that any one individual in the community gets from parks is close to 0.Without government intervention,the amount of land dedicated to the public park will be _____ acres.
A)0 
B)1 
C)3

Quizplus · Accepted Answer

Without government intervention, the amount of land dedicated to the public park would be determined by the private market, where the marginal private benefit of parks is close to 0. As seen in the table, at 0 acres, the marginal social benefit and the marginal social cost are both 0, indicating that there is no net benefit to society from having a park. Therefore, the private market would not have an incentive to dedicate any land to a public park.

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