Use this information to answer questions 1-3 Price $ 3000 2900 2700 ο ο ο 2600 Question 1 200 O 325 O 375 In above, if there are no external costs, the rate of output will be: 400 Question 2 In figure above, if the rate of output is 400 units: O Social costs exceed private costs. O There is no market failure. O Pollution costs (for example) are not external. All of these options are correct. Question 3 200 325 375 400 $3000 O $2800 $600 $400 O $300 Social MC In the figure above, what is the amount of the negative externality? O $200 Private MC MR Quantity

Use this information to answer questions 1-3 Price $ 3000 2900 2700 ο ο ο 2600 Question 1 200 O 325 O 375 In above, if there are no external costs, the rate of output will be: 400 Question 2 In figure above, if the rate of output is 400 units: O Social costs exceed private costs. O There is no market failure. O Pollution costs (for example) are not external. All of these options are correct. Question 3 200 325 375 400 $3000 O $2800 $600 $400 O $300 Social MC In the figure above, what is the amount of the negative externality? O $200 Private MC MR Quantity

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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