Scenario: the Following Figure Shows the Private Cost and Social

question 174

Multiple Choice

Scenario: The following figure shows the private cost and social cost of producing Good X. Firm A is the producer of Good X. The production plant and Bob's house are located next to a river. However, the plant is upstream, and Bob's house is downstream. Since production pollutes the river, Bob suffers from a negative externality.

-Refer to the scenario above.What is the value of the negative externality imposed on Bob when the firm produces to maximize its private net benefits?

• A) (b d) e
• B) (a c) f
• C) d e
• D) c f

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Definitions:

Sleep Method

A method used to pause the execution of a program for a specified period of time.

Formal Parameter

A variable specified in the method declaration that accepts the value passed to the method during its invocation.

Milliseconds

A unit of time equal to one thousandth of a second, commonly used in computing and time measurements.

JavaBeans

A Java-based software component model that allows for encapsulation of many objects into a single object (a bean), following specific conventions.