Figure 5-2 shows a market with a negative externality.
-Refer to Figure 5-2.The private profit-maximizing quantity for the firm is
A)Qa.
B)Qb.
C)Qb - Qd.
D)Qd.

Name: Figure 5-2 shows a market with a negative externality. -Refer to Figure 5-2.The private profit-maximizing quantity for the firm is A)Qa. B)Qb. C)Qb - Qd. D)Qd.
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Question

Figure 5-2 shows a market with a negative externality.
-Refer to Figure 5-2.The private profit-maximizing quantity for the firm is
A)Qa. 
B)Qb. 
C)Qb - Qd. 
D)Qd.

Quizplus · Accepted Answer

The private profit-maximizing quantity for a firm is typically where marginal cost equals marginal revenue, which is often represented by Qb in economic diagrams.

Figure 5-2 Shows a Market with a Negative Externality