Suppose a Firm Producing Roof Shingles Imposes a Negative Externality

question 88

Multiple Choice

Suppose a firm producing roof shingles imposes a negative externality on the surrounding area due to the noxious fumes emitted from the plant.The private marginal cost,social marginal cost and marginal benefit associated with the production of the shingles are given by the following equations: MCP = 5 + 2Q MCS = 10 + 3Q MB = 50 - Q
A competitive free market will produce ________ units, at a price of ________ per unit

• A)20; $25
• B)20; $40
• C)15; $40
• D)15; $35
• E)10; $35

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Definitions:

Universal Donors

Individuals with O-negative blood type, whose red blood cells can be transfused into persons of any other blood type without adverse reactions.

Type O Blood

A blood type characterized by the absence of A and B antigens on the surface of red blood cells, making it a universal donor for red cell transfusions.

Diploid Cells

Cells that contain two complete sets of chromosomes, one from each parent, characteristic of most organismal body cells except for gametes.

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