Refer to Table 10-3. The socially optimal quantity of output isO a. 5 units.O b. 6 units.Oc. 4 units.O d. 3 units.Table 10-3Quantity Private Value Private Cost External Benefit(Units)123456(Dollars) (Dollars)22122018161412HENNN1518212427(Dollars)101010101010

External benefit is the spillover positive effect of an economic activity on society.

Refer to Table 10-3. The socially optimal quantity of output is O a. 5 units. O b. 6 units. O c. 4 units. O d. 3 units. Quantity Private Value Private Cost External Benefit (Units) (Dollars) (Dollars) 12 15 18 21 24 27 1 2 3 4 5 6 Table 10-3 22 20 18 16 14 12 (Dollars) 10 10 10 10 10 10

Refer to Table 10-3. The socially optimal quantity of output is O a. 5 units. O b. 6 units. O c. 4 units. O d. 3 units. Quantity Private Value Private Cost External Benefit (Units) (Dollars) (Dollars) 12 15 18 21 24 27 1 2 3 4 5 6 Table 10-3 22 20 18 16 14 12 (Dollars) 10 10 10 10 10 10

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

Refer to Table 10-3. The socially optimal quantity of output is
O a. 5 units.
O b. 6 units.
O
c. 4 units.
O d. 3 units.
Table 10-3
Quantity Private Value Private Cost External Benefit
(Units)
1
2
3
4
5
6
(Dollars) (Dollars)
22
12
20
18
16
14
12
HENNN
15
18
21
24
27
(Dollars)
10
10
10
10
10
10

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