Figure 11-4 Figure 11-4 shows a market with a negative externality.
-Refer to Figure 11-4.The efficient output level is

Name: Figure 11-4 Figure 11-4 shows a market with a negative externality. -Refer to Figure 11-4.The efficient output level is
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Question

Figure 11-4  Figure 11-4 shows a market with a negative externality.
-Refer to Figure 11-4.The efficient output level is

Quizplus · Accepted Answer

The efficient output level is where the social cost (MC + external cost) intersects with the demand curve. In this graph, that intersection occurs at Qa, which is the optimal output level. Therefore, the best choice is option C.

Figure 11-4 Figure 11-4 Shows a Market with a Negative