-The tables above show the marginal costs and benefits from the production and consumption of paper. From this information we can see that there are
A) no externalities in production of paper.
B) external costs of producing paper.
C) external benefits of producing paper.
D) external costs from consuming paper.

Question

-The tables above show the marginal costs and benefits from the production and consumption of paper. From this information we can see that there are
A) no externalities in production of paper. 
B) external costs of producing paper. 
C) external benefits of producing paper. 
D) external costs from consuming paper.

Quizplus · Accepted Answer

External costs of producing paper are indicated by the presence of marginal costs that are not accounted for by the producer, suggesting that there are additional costs to society not captured in the market price.

-The Tables Above Show the Marginal Costs and Benefits from the Production