Scenario: the Production of a Good Creates a Negative Externality

question 192

Multiple Choice

Scenario: The production of a good creates a negative externality. The following figure shows the market for this good.

-Refer to the scenario above.The socially optimal price for this good is ________,while the market price of it is equal to ________.

• A) $14; $10
• B) $20; $10
• C) $20; $14
• D) $14; $20

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Definitions:

Central Nervous System

The part of the nervous system comprising the brain and spinal cord, responsible for processing and transmitting information.

Meninges

Protective membranes that cover the brain and spinal cord, comprising the dura mater, arachnoid mater, and pia mater.

Spinal Cord

In vertebrates, the nerve cord that is continuous with the base of the brain and housed within the vertebral column.

Medulla Oblongata

In vertebrates, part of the brain stem that is continuous with the spinal cord; controls heartbeat, blood pressure, breathing, and other vital functions.