Use the Following to Answer Questions

question 38

Multiple Choice

Use the following to answer questions:
-(Table: Externalities from Parks) The table Externalities from Parks shows the marginal social benefit and the marginal social cost of preserving various amounts of land in a city for a public park. At the socially optimum amount of land dedicated to the public park the marginal social cost will be:

• A) $225.
• B) $150.
• C) $100.
• D) $0.

---

Definitions:

Long-run Average Total Cost

A curve that shows the lowest average cost at which a firm can produce any given level of output in the long run, when all inputs are variable.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent or salaries.

Specialization

A production strategy where individuals, regions, or nations focus on the production of a limited scope of goods or services to gain greater efficiency and productivity.

Economies of Scale

Economies of Scale describe the cost advantages that a business can achieve due to expansion, leading to a lower cost per unit of output.