-Based on the data in the above table, the table shows a market for a good with
A) an external cost.
B) an external benefit.
C) a mixed externality.
D) no externalities.

Question

-Based on the data in the above table, the table shows a market for a good with
A) an external cost. 
B) an external benefit. 
C) a mixed externality. 
D) no externalities.

Quizplus · Accepted Answer

The table shows that the market for the good is not efficient because the social cost of production is greater than the private cost of production. This is an example of an external cost.

-Based on the Data in the Above Table, the Table