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question 161

Multiple Choice

Use the following to answer questions: 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. If 5 acres is dedicated to the park, this outcome is _____ because _____. A)  efficient; MSB = MSC B)  efficient; MSB > MSC C)  inefficient; MSB > MSC D)  inefficient; MSB < MSC
-(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. If 5 acres is dedicated to the park, this outcome is _____ because _____.


Definitions:

Reservation Price

The highest price a person is prepared to spend on a product or service.

English Auction

A bidding process where the price ascends and the highest bid wins, commonly used in auction houses and online marketplaces.

Willingness To Pay

The maximum amount an individual is prepared to spend on a good or service, reflecting the perceived value.

Revenue

The total amount of money generated from the sale of goods or services before any expenses are subtracted.

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