Figure 11.2.1 Chemical Fertilizer Market Marginal Social Marginal Private Marginal Social Output Benefit Cost Cost (units) (MSB) (MPC) (MSC) 0 $80 $0 $20 1 $70 $10 $30 2 $60 $20 $40 3 $50 $30 $50 4 $40 $40 $60 5 $30 $50 6 $20 $60 $70 $80 Figure 11.2.1 shows the marginal social benefit from using fertilizer and the marginal private cost and marginal social cost of producing fertilizer. The marginal private benefit is the same as the marginal social benefit. If the market is unregulated, the marginal ○ A. social cost equals the marginal private benefit. B. private cost equals the marginal social benefit. O C. social cost equals the marginal private cost. ○ D. private cost is less than the marginal social benefit. O E. private cost is greater than the marginal social benefit.
Figure 11.2.1 Chemical Fertilizer Market Marginal Social Marginal Private Marginal Social Output Benefit Cost Cost (units) (MSB) (MPC) (MSC) 0 $80 $0 $20 1 $70 $10 $30 2 $60 $20 $40 3 $50 $30 $50 4 $40 $40 $60 5 $30 $50 6 $20 $60 $70 $80 Figure 11.2.1 shows the marginal social benefit from using fertilizer and the marginal private cost and marginal social cost of producing fertilizer. The marginal private benefit is the same as the marginal social benefit. If the market is unregulated, the marginal ○ A. social cost equals the marginal private benefit. B. private cost equals the marginal social benefit. O C. social cost equals the marginal private cost. ○ D. private cost is less than the marginal social benefit. O E. private cost is greater than the marginal social benefit.
Chapter1: Making Economics Decisions
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Transcribed Image Text:Figure 11.2.1
Chemical Fertilizer Market
Marginal Social
Marginal Private
Marginal Social
Output
Benefit
Cost
Cost
(units)
(MSB)
(MPC)
(MSC)
0
$80
$0
$20
1
$70
$10
$30
2
$60
$20
$40
3
$50
$30
$50
4
$40
$40
$60
5
$30
$50
6
$20
$60
$70
$80
Figure 11.2.1 shows the marginal social benefit from using fertilizer and the marginal private cost and marginal social cost of producing fertilizer. The marginal
private benefit is the same as the marginal social benefit. If the market is unregulated, the marginal
○ A. social cost equals the marginal private benefit.
B. private cost equals the marginal social benefit.
O C. social cost equals the marginal private cost.
○ D. private cost is less than the marginal social benefit.
O E. private cost is greater than the marginal social benefit.
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