firm A firm B firm C firm D

External costs $ 0 ___$__ 175 ___$__

privet costs 400 250 175 200

social costs ______ 350 ___$__ 250

Table 28.2 In Table 28.2, which firm has the greatest difference between social and private costs?

Question

	firm A	firm B	firm C	firm D
External costs	$ 0	___$__	175	___$__
privet costs	400	250	175	200
social costs	______	350	___$__	250

Table 28.2 In Table 28.2, which firm has the greatest difference between social and private costs?

Quizplus · Accepted Answer

To calculate the difference between social and private cost for each firm, we need to subtract the private cost from the social cost.

Firm A: $50 - $20 = $30
Firm B: $40 - $30 = $10
Firm C: $70 - $20 = $50
Firm D: $80 - $60 = $20

Hence, Firm C has the greatest difference between social and private costs with a difference of $50.