Refer to the information provided in Figure 16.3 below to answer the question(s) that follow. Figure 16.3
-Refer to Figure 16.3. At 20 units of output there are external
A) costs of $2 per unit.
B) benefits of $2 per unit.
C) costs of $5 per unit.
D) benefits of $5 per unit.

Question

Refer to the information provided in Figure 16.3 below to answer the question(s) that follow.  Figure 16.3
-Refer to Figure 16.3. At 20 units of output there are external
A) costs of $2 per unit. 
B) benefits of $2 per unit. 
C) costs of $5 per unit. 
D) benefits of $5 per unit.

Quizplus · Accepted Answer

At 20 units of output, the external costs are the difference between the social cost curve and the private cost curve, which is $2 per unit.

Refer to the Information Provided in Figure 16