Figure 10-2. The graph depicts the market for plastic.
-Refer to Figure 10-2. The private value of the 200th unit of plastic exceeds the social cost of the 200th unit of plastic by
A) $4.
B) $8.
C) $12.
D) $16.

Question

Figure 10-2. The graph depicts the market for plastic. 
-Refer to Figure 10-2. The private value of the 200th unit of plastic exceeds the social cost of the 200th unit of plastic by
A) $4. 
B) $8. 
C) $12. 
D) $16.

Quizplus · Accepted Answer

The private value of the 200th unit of plastic is $20, while the social cost of the 200th unit of plastic is $12. Therefore, the private value exceeds the social cost by $8.