Figure 15.2 Figure 15.2 shows a market with a negative externality.
-Refer to Figure 15.2.What price represents the marginal benefit of the last unit produced?

Question

Figure 15.2  Figure 15.2 shows a market with a negative externality.
-Refer to Figure 15.2.What price represents the marginal benefit of the last unit produced?

Quizplus · Accepted Answer

The marginal benefit of the last unit produced is represented by the price at which the quantity supplied equals the quantity demanded, which is typically shown as the equilibrium price in a supply and demand graph.

Figure 152 Figure 15