How large is the externality illustrated by the figure below? 1Price 16 14 Social Cost 12 10 Private Cost 8. 6. 4. Demand 2. 200 500 650 Quantity O $4 per-unit positive externality O $3 per-unit negative externality O $3 per-unit positive externality O $4 per-unit negative externality

How large is the externality illustrated by the figure below? 1Price 16 14 Social Cost 12 10 Private Cost 8. 6. 4. Demand 2. 200 500 650 Quantity O $4 per-unit positive externality O $3 per-unit negative externality O $3 per-unit positive externality O $4 per-unit negative externality

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

How large is the externality illustrated by the figure below?
IPrice
16
14
Social Cost
12-
10
Private Cost
8.
6.
4.
Demand
2-
200
500 650
Quantity
O $4 per-unit positive externality
$3 per-unit negative externality
O $3 per-unit positive externality
O $4 per-unit negative externality

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