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.

---

Definitions:

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, including expenses like rent, wages, and insurance.

Budgeted Costs

Estimated expenses for a future period, which are prepared for planning and control purposes.

Variable Manufacturing

Costs that vary directly with the level of production output, including direct materials, direct labor, and variable manufacturing overhead.

Fixed Manufacturing

Expenses that do not vary with the level of production or sales, such as rent, salaries, and equipment depreciation.