Examine the following graph of a market for coal, which shows the marginal private cost (MPC), marginal social cost (MSC), marginal private benefit (MPB) and marginal social benefit (MSB). Price ($) 7 6 5 2 1 0 0 .MPB 1 Output (tonnes) MSB MPC 2 MSC 3

Principles of Economics 2e
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ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter12: Environmental Protection And Negative Externalities
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Examine the following graph of a market for coal, which shows the marginal private cost (MPC), marginal social cost (MSC), marginal private benefit
(MPB) and marginal social benefit (MSB).
Price ($)
7
6
5
4
2
1
0
MPB
1
Output (tonnes)
MSB
MPC
MSC
3
Transcribed Image Text:Examine the following graph of a market for coal, which shows the marginal private cost (MPC), marginal social cost (MSC), marginal private benefit (MPB) and marginal social benefit (MSB). Price ($) 7 6 5 4 2 1 0 MPB 1 Output (tonnes) MSB MPC MSC 3
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