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PA P₂ P₂ 5 (dollars per unit) Figure 16.2.1 MSC Q₂ Quantity (units per day) MC B) the quantity produced is greater than the efficient quantity. C) the quantity produced is less than the efficient quantity. D) the quantity produced is efficient but price is too low. E) the quantity produced is efficient but the price is too high, 72) Refer to Figure 16.2.1. The figure shows the marginal private cost curve, the marginal social cost curve and the market demand curve. If the market is unregulated, then A) the externality is eliminated.

PA P₂ P₂ 5 (dollars per unit) Figure 16.2.1 MSC Q₂ Quantity (units per day) MC B) the quantity produced is greater than the efficient quantity. C) the quantity produced is less than the efficient quantity. D) the quantity produced is efficient but price is too low. E) the quantity produced is efficient but the price is too high, 72) Refer to Figure 16.2.1. The figure shows the marginal private cost curve, the marginal social cost curve and the market demand curve. If the market is unregulated, then A) the externality is eliminated.

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter12: Environmental Protection And Negative Externalities
Section: Chapter Questions
Problem 42P: Table 12.12, shows the supply and demand conditions for a firm that will play trumpets on the...
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Price (dollars per unit) PA P3 P₂ P₁ 0 MSC Figure 16.2.1 MC Q₂ Quantity (units per day) 72) Refer to Figure 16.2.1. The figure shows the marginal private cost curve, the marginal social cost curve and the market demand curve. If the market is unregulated, then A) the externality is eliminated. B) the quantity produced is greater than the efficient quantity. C) the quantity produced is less than the efficient quantity. D) the quantity produced is efficient but price is too low. E) the quantity produced is efficient but the price is too high.
Transcribed Image Text:Price (dollars per unit) PA P3 P₂ P₁ 0 MSC Figure 16.2.1 MC Q₂ Quantity (units per day) 72) Refer to Figure 16.2.1. The figure shows the marginal private cost curve, the marginal social cost curve and the market demand curve. If the market is unregulated, then A) the externality is eliminated. B) the quantity produced is greater than the efficient quantity. C) the quantity produced is less than the efficient quantity. D) the quantity produced is efficient but price is too low. E) the quantity produced is efficient but the price is too high.
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