Price 63 Supply (private cost) 42 36 Social value (private value and extemal benefit) 24 15 Demand (private value) 240 420 Quantity Refer to Figure 10-11. Which of the following statements is correct? O a. The private value of the 420 unit of output is $15. O b. The social value of the 420h unit of output is $42. O C. The external benefit of the 420" unit of output is $27. O d. All of the above are correct.

Price 63 Supply (private cost) 42 36 Social value (private value and extemal benefit) 24 15 Demand (private value) 240 420 Quantity Refer to Figure 10-11. Which of the following statements is correct? O a. The private value of the 420 unit of output is $15. O b. The social value of the 420h unit of output is $42. O C. The external benefit of the 420" unit of output is $27. O d. All of the above are correct.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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uncements us es $10 Materials $7 -Hill $5 49 sources 20 30 D Q If this market has a tax of $5 per unit imposed on it, what is the Deadweight Loss? O $7 O $25 O $30 O $100 IT * zoom
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Figure 1. The graph depicts the market for plastic containers. Price 16- 14- 12- 10 8- 6 200 500 650 Social Cost Private Cost Demand Quantity Refer to Figure 1. In order to reach the social optimum, the government could O offer a subsidy of $8 per unit on the production of plastic containers. O impose a tax of $8 per unit on the production of plastic containers. O offer a subsidy of $4 per unit on the production of plastic containers. O impose a tax of $4 per unit on the production of plastic containers.
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