Refer to the information provided in Figure 16.1 below to answer the question(s) that follow. Figure 16.1
-Refer to Figure 16.1. Absent government intervention, how much fertilizer will be produced?
A) Zero because any level of production involves an external cost.
B) 50 bags
C) 60 bags
D) indeterminate from this information

Question

Refer to the information provided in Figure 16.1 below to answer the question(s) that follow.  Figure 16.1
-Refer to Figure 16.1. Absent government intervention, how much fertilizer will be produced?
A) Zero because any level of production involves an external cost. 
B) 50 bags 
C) 60 bags 
D) indeterminate from this information

Quizplus · Accepted Answer

The quantity of fertilizer produced absent government intervention will be determined by the market equilibrium, where the private supply and demand curves intersect. Without seeing Figure 16.1, the specific answer cannot be determined from the information provided. However, the question implies that there is a specific quantity that can be identified, suggesting that the correct answer is based on an assumption of typical market behavior rather than the presence of external costs or the need for additional information.

Refer to the Information Provided in Figure 16