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-(Table: Externalities from Parks) The table Externalities from Parks shows the marginal social benefit and the marginal social cost of preserving various amounts of land in a city for a public park. At the socially optimum amount of land dedicated to the public park the marginal social cost will be:
A) $225.
B) $150.
C) $100.
D) $0.

Question

Use the following to answer questions: 
-(Table: Externalities from Parks) The table Externalities from Parks shows the marginal social benefit and the marginal social cost of preserving various amounts of land in a city for a public park. At the socially optimum amount of land dedicated to the public park the marginal social cost will be:
A) $225. 
B) $150. 
C) $100. 
D) $0.

Quizplus · Accepted Answer

At the socially optimum amount of land, the marginal social benefit equals the marginal social cost. Therefore, the marginal social cost at the socially optimum point is $150, as it matches the marginal social benefit at that level.

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