Answered: Refer to Figure 1. The benefit to…

Refer to Figure 1. The benefit to bystanders (i.e., 3rd party) from reducing the quantity to 120 units from 160 is equal O a. $40.

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

Figure 1
24
22
18
16
6
Price
120 160
Social cost (private cost
and external cost)
Supply
(private cost)
-Demand
(private value)
Quantity

Refer to Figure 1. The benefit to bystanders (i.e., 3rd party) from
reducing the quantity to 120 units from 160 is equal
O a. $40.
O b. $240.
O c. $120.
O d. $0. There can be no benefit from reducing quantity, only
loss in surplus.
A
CREM
Masa

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