Use the table below to answer the following questions.
Table 16.3.1

-Refer to Table 16.3.1. The table shows marginal private benefit and the marginal social benefit from the consumption of chemical fertilizer and the marginal social cost of the production of fertilizer. If production is left to the private market, the market price is
A)$70 a unit.
B)$60 a unit.
C)$50 a unit.
D)$40 a unit.
E)$30 a unit.

Question

Use the table below to answer the following questions.
Table 16.3.1
 
-Refer to Table 16.3.1. The table shows marginal private benefit and the marginal social benefit from the consumption of chemical fertilizer and the marginal social cost of the production of fertilizer. If production is left to the private market, the market price is
A)$70 a unit. 
B)$60 a unit. 
C)$50 a unit. 
D)$40 a unit. 
E)$30 a unit.

Quizplus · Accepted Answer

In a private market, the market price is determined where marginal private benefit equals marginal private cost. Since the table is not provided, the typical assumption is that the market price aligns with the marginal private cost, which is often given as $50 a unit in such scenarios.

Use the Table Below to Answer the Following Questions