Suppose a Firm Producing Roof Shingles Imposes a Negative Externality

question 125

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
The social marginal cost at the competitive equilibrium is ________ per unit.

• A)$5
• B)$13
• C)$50
• D)$55
• E)$25

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Definitions:

Personality Traits

Enduring characteristics that describe an individual's behavior, attitude, and emotions, shaping their reactions to different situations.

High Attachment Anxiety

A condition in which individuals feel excessive worry about relationships, fearing rejection or abandonment.

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Patterns of emotional bonding and interpersonal relationships, influenced by early life experiences with caregivers.

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A style of attachment characterized by a reluctance to develop close emotional connections with others, often due to fear of dependency or rejection.