The diagram below shows the private and social marginal costs (MCP and MCS) and the social marginal benefits (MBS) of producing disposable diapers.
FIGURE 17- 2
-Refer to Figure 17- 2.The net social benefit derived from the production and use of disposable diapers is
A) zero at Q0,because that is where MCS equals MBS.
B) at a minimum at Q0,because MCS exceeds MCP.
C) zero at Q2,because that is where the externality is internalized.
D) at a maximum at Q1,because that is where MCS equals MBS.
E) at a maximum at Q0,because that is where MCS equals MBS.
Correct Answer:
Verified
Q1: In general,the economist's view on allocating resources
Q2: A paper mill discharges chemicals into a
Q4: Economists often argue that a system of
Q5: Two firms,A and B,are legally required to
Q6: The diagram below shows a market for
Q7: The diagram below shows the marginal cost
Q8: Suppose the government imposes an emissions tax
Q9: Consider a coal- fired electric- power plant
Q10: The figure below shows the marginal benefit
Q11: The figure below shows the marginal benefit
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents