The Graph Shown Displays a Market with an Externality

question 86

Multiple Choice

The graph shown displays a market with an externality. This is a _______ externality, and the optimal quantity is _______ units.

• A)positive; 6
• B)positive; 8
• C)negative; 6
• D)negative; 8

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Definitions:

Abbreviation

A condensed version of a word or phrase.

Pattern

A repeated decorative design or a model used as a guide in manufacturing processes to replicate part shapes.

Drag

The resistance force encountered by an object moving through a fluid or by a fluid moving around an object.

Cope

To shape or modify the end of a beam or structural element to fit the contours of another, or to allow it to rest securely on a connection.