Figure 10-2

-Refer to Figure 10-2.If all external costs were internalized,what would be the market's equilibrium output
A)Q₁
B)Q₂
C)Q₃
D)Q₄

Question

Figure 10-2
 
-Refer to Figure 10-2.If all external costs were internalized,what would be the market's equilibrium output
A)Q₁ 
B)Q₂ 
C)Q₃ 
D)Q₄

Quizplus · Accepted Answer

When external costs are internalized, the market's equilibrium output would be at the socially optimal level, which is typically represented by Q₂ in such diagrams, where the social cost curve intersects the demand curve.

Figure 10-2 -Refer to Figure 10-2.If All External Costs Were Internalized,what Would