Use the Table Below to Answer the Following Questions

question 40

Multiple Choice

Use the table below to answer the following questions.
Table 15.2.1
-Refer to Table 15.2.1.Given in the table are the marginal private cost and the marginal social cost of the production of chemical fertilizer and the marginal social benefit from the consumption of fertilizer.The table illustrates that this market has

• A)positive externalities,equal to $10 per unit.
• B)negative externalities,equal to $10 per unit.
• C)no externalities.
• D)positive externalities,equal to $20 per unit.
• E)negative externalities,equal to $20 per unit.

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Definitions:

International Financial Reporting Standards

A set of global accounting standards developed by the International Accounting Standards Board for financial reporting.

Financing Cash Flow

Cash flow related to the financing activities of a business, including issuing or buying back shares, debt issuance, and payment of dividends.

Indirect Method

A way to report cash flows from operating activities by starting with net income and adjusting for non-cash transactions.

Accrual Earnings

Earnings that are recognized when revenues are earned and expenses are incurred, not necessarily when cash is received or paid.