-The figure above shows the market for a good with an external benefit. When 6 units are produced, marginal social benefit equals ________ and marginal external benefit equals ________.
A) $200; $50
B) $150; $250
C) $200; $150
D) $350; $200
E) $350; $150

Question

-The figure above shows the market for a good with an external benefit. When 6 units are produced, marginal social benefit equals ________ and marginal external benefit equals ________.
A) $200; $50 
B) $150; $250 
C) $200; $150 
D) $350; $200 
E) $350; $150

Quizplus · Accepted Answer

Marginal social benefit is the sum of marginal private benefit and marginal external benefit. If 6 units are produced and the marginal social benefit is $350, then the marginal external benefit is $150.

-The Figure Above Shows the Market for a Good with an External