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

Question

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

Quizplus · Accepted Answer

The presence of external costs of producing paper is indicated by the difference between the private marginal cost and the social marginal cost, suggesting that production imposes additional costs on society not accounted for by the producer.

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