The diagram below show the private and social marginal costs and the social marginal benefits of producing disposable diapers.
FIGURE 17- 2
-Refer to Figure 17- 2. The net social benefit derived from the production and use of the last unit of disposable diapers is
A) at a minimum at Q0, because MCS exceeds MCP.
B) at a maximum at Q0, because that is where MCS equals MBS.
C) at a maximum at Q1, because that is where MCS equals MBS.
D) zero at Q2, because that is where the externality is fully maximized.
E) zero at Q0, because that is where MCS equals MBS.
Correct Answer:
Verified
Q92: The diagram below shows the market for
Q93: Direct pollution controls are likely to be
Q94: The diagram below shows the marginal costs
Q95: If residential garbage collection were financed by
Q96: The table below shows the marginal
Q98: The diagram below shows the marginal cost
Q99: The figure below shows the demand and
Q100: The marginal benefit of reducing pollution and
Q101: The diagram below shows the marginal cost
Q102: Suppose a competitive market for tradable pollution
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