Figure: Negative Externalities and Raising Pigs for Pork

question 7

Multiple Choice

Figure: Negative Externalities and Raising Pigs for Pork (Figure: Negative Externalities and Raising Pigs for Pork) Refer to the figure Negative Externalities and Raising Pigs for Pork.If the marginal external cost of raising a pig for pork is $400, then the socially optimal quantity of pigs to raise is and
The socially optimal price is _.

• A)150; $900
• B)200; $800
• C)250; $700
• D)300; $1,200

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Definitions:

Gradual Weakening

A slow reduction in strength, intensity, or power of something, often occurring over time.

Conditioned Response

A learned reaction to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus.

B. F. Skinner

An influential American psychologist known for developing the theory of behaviorism and for his research on operant conditioning.

Operant Conditioning

A learning process in which the probability of a behavior is changed by its consequences, such as rewards or punishments.