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Use Figure: Negative Externality and Deadweight Loss II

Question 55

Multiple Choice

Use Figure: Negative Externality and Deadweight Loss II. The figure shows the marginal benefit, marginal private cost, and marginal social cost that are associated with producing a good. At the free-market equilibrium, the deadweight loss associated with the externality is:

Figure: Negative Externality and Deadweight Loss II
Use Figure: Negative Externality and Deadweight Loss II. The figure shows the marginal benefit, marginal private cost, and marginal social cost that are associated with producing a good. At the free-market equilibrium, the deadweight loss associated with the externality is: ​ Figure: Negative Externality and Deadweight Loss II   A)  $10. B)  $20. C)  $30. D)  $40.


A) $10.
B) $20.
C) $30.
D) $40.

Correct Answer:

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