Scenario 10-4 the Demand Curve for Fire Extinguishers Slopes Downward and the and the Supply

question 40

Essay

Scenario 10-4
The demand curve for fire extinguishers slopes downward and the supply curve for fire extinguishers slopes upward. The production of the 500^th fire extinguisher entails the following:
• a private cost of $10;
• an external cost of $0;
• a private value of $9;
• an external benefit of $3.
-Refer to Scenario 10-4. Does the production of fire extinguishers convey a positive externality, a negative externality, or neither?

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Definitions:

Mitochondria

Organelles found in the cytoplasm of most cells, involved in the production of ATP through the process of oxidative phosphorylation.

Lysosomal Enzyme

Enzymes found within lysosomes that are responsible for breaking down waste materials and cellular debris.

Cristae

The inner folds of the mitochondrial membrane, which increase the surface area for ATP production during cellular respiration.

Mitochondria

Cellular structures responsible for producing the majority of adenosine triphosphate (ATP), the cell's primary source of chemical energy.