-The figure above shows the market for a good with an external benefit.When 6 units are produced,marginal social benefit equals ________ and marginal external benefit equals ________.
A) $200; $150
B) $350; $200
C) $200; $50
D) $350; $150
E) $150; $250

Question

-The figure above shows the market for a good with an external benefit.When 6 units are produced,marginal social benefit equals ________ and marginal external benefit equals ________.
A) $200; $150 
B) $350; $200 
C) $200; $50 
D) $350; $150 
E) $150; $250

Quizplus · Accepted Answer

Marginal social benefit is the sum of marginal private benefit and marginal external benefit. If 6 units are produced and the marginal social benefit is $350, the marginal external benefit is $150.

-The Figure Above Shows the Market for a Good with an External