Suppose a Firm Producing Roof Shingles Imposes a Negative Externality

question 16

Multiple Choice

Suppose a firm producing roof shingles imposes a negative externality on the surrounding area due to the noxious fumes emitted from the plant.The private marginal cost,social marginal cost and marginal benefit associated with the production of the shingles are given by the following equations: MC_P = 5 + 2Q
MC_S = 10 + 3Q
MB = 50 - Q
The allocatively efficient level of output is ________ units.

• A)0
• B)5
• C)10
• D)15
• E)20

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Definitions:

Supervisors

Individuals who oversee the work of others, responsible for guiding, managing, and evaluating the performance of subordinates.

Sexual Harassment

Unwanted sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature in the workplace or learning environments.

Work

Any productive activity through which an individual, group, or organization aims to achieve a goal and earn compensation.

Sexual Harassment

Inappropriate sexual proposals, demands for sexual privileges, and various types of sexual harassment through words or actions.