(Figure: Determining Externalities) Assuming That a Pollution Cost of $10,000

question 181

Multiple Choice

(Figure: Determining Externalities) Assuming that a pollution cost of $10,000 per thousand units is implemented, based on the graph, at point e the net total social (consumer plus producer) surplus is now

• A) $75,000.
• B) $80,000.
• C) $100,000.
• D) $125,000.

---

Definitions:

Lump-Sum Payment

A one-time payment made for a particular item or service, rather than payments spread over time.

Monopsony Power

A market condition where there is only one buyer, giving them the power to influence prices and terms.

Personal Computer Market

A segment of the consumer electronics industry that deals with the manufacturing, distribution, and sale of personal computers and related products.

Computer Components

The physical parts or elements of a computer system, like the CPU, RAM, and hard drive.