(Figure: Externalities) Answer the following questions.
a. Is there a positive or negative externality in the market?
b. What are the market equilibrium price and quantity?
c. What are the socially optimal equilibrium price and quantity?
d. What is the size of the external marginal benefit or external marginal cost?

Question

(Figure: Externalities) Answer the following questions.  
a. Is there a positive or negative externality in the market?
b. What are the market equilibrium price and quantity?
c. What are the socially optimal equilibrium price and quantity?
d. What is the size of the external marginal benefit or external marginal cost?

Quizplus · Accepted Answer

The Answer of (Figure: Externalities) Answer the following questions.  
a. Is there a positive or negative externality in the market?
b. What are the market equilibrium price and quantity?
c. What are the socially optimal equilibrium price and quantity?
d. What is the size of the external marginal benefit or external marginal cost?

(Figure: Externalities) Answer the Following Questions