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. The ________ imposed as a result of producing the market (unregulated) level of fertilizer is $300.
A) marginal social cost
B) total damage
C) marginal private cost
D) tax

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. The ________ imposed as a result of producing the market (unregulated) level of fertilizer is $300.
A) marginal social cost 
B) total damage 
C) marginal private cost 
D) tax

Quizplus · Accepted Answer

The correct answer is B) total damage because the $300 represents the external cost or damage to society (not accounted for by the market) due to the production of fertilizer at the unregulated market level. This is not the marginal social cost, marginal private cost, or a tax, but rather the total external cost or damage imposed on society.

Refer to the Information Provided in Figure 16