A Negative Externality Problem

question 59

Multiple Choice

A Negative Externality Problem

Demand for a good is given by Q = 100 - P. The private marginal cost of production is MCP = 10 + Q. There is a $10 per unit negative production externality in this situation.


-Refer to A Negative Externality Problem.According to Pigou,the socially optimal level of production is

• A) 0 units.
• B) 30 units.
• C) 40 units.
• D) 45 units.

---

Definitions:

ROM

ROM stands for Range of Motion, which is the full movement potential of a joint, usually its range of flexion and extension.

Stabilize

To make steady; firmly fixed; constant.

Plantar Flexion

The movement of pointing the foot or toes downward, away from the body, commonly used in activities like walking or pressing a pedal.

Automobile Pedal

A lever operated with the foot in a vehicle, used for controlling its functions such as acceleration, braking, or clutch engagement.