Figure 10-4

-Refer to Figure 10-4.At Q₃
A) the marginal consumer values this product less than the social cost of producing it.
B) every consumer values this product less than the social cost of producing it.
C) the cost to society is equal to the value to society.
D) the marginal consumer values this product more than the private cost.

Question

Figure 10-4
 
-Refer to Figure 10-4.At Q₃
A) the marginal consumer values this product less than the social cost of producing it. 
B) every consumer values this product less than the social cost of producing it. 
C) the cost to society is equal to the value to society. 
D) the marginal consumer values this product more than the private cost.

Quizplus · Accepted Answer

At Q₃, the marginal consumer values the product less than the social cost of producing it, indicating overproduction and a negative externality.

Figure 10-4 -Refer to Figure 10-4.At Q₃