Table 10-2 the Following Table Shows the Private Value, Private Cost, and Cost

question 329

Multiple Choice

Table 10-2
The following table shows the private value, private cost, and social value for a market with a positive externality.
-Refer to Table 10-2. What is the equilibrium quantity of output in this market?

• A)3 units
• B)4 units
• C)5 units
• D)6 units

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Definitions:

Moral Intuitions

The gut feelings or spontaneously formed judgments that influence our decisions on what is right or wrong without conscious reasoning.

Quick Gut Feelings

Rapid, intuitive judgments formed without conscious deliberation.

Social Influence

The effect that the words, actions, or mere presence of other people have on our thoughts, feelings, attitudes, or behavior.

Immorality

The quality or action of being wrong or evil in behavior or ethics, contrary to accepted moral standards.