Table 10-2 the Following Table Shows the Private Value, Private Cost, and Cost

question 115

Multiple Choice

Table 10-2
The following table shows the private value, private cost, and social value for a market with a positive externality.
-Refer to Table 10-2. How large would a subsidy need to be in this market to move the market from the equilibrium level of output to the socially-optimal level of output?

• A)$3
• B)$5
• C)$7
• D)$9

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Definitions:

Positive Information

Information that has a beneficial or favorable impact on an individual or situation.

Managing Emotions

The process of recognizing, identifying, and controlling one's emotional responses.

Emotional Information

Data that is related to feelings, moods, and attitudes, which can influence perception, decision-making, and memory.

Older Adults

A demographic category referring to people in their advanced years, often experiencing a range of health, social, and cognitive issues distinct from younger populations.