The Following Graph Shows Market Equilibrium in the Presence of an Externality

question 31

Multiple Choice

The following graph shows market equilibrium in the presence of an externality. The total social gain from producing the socially efficient output is:​ ​
Figure 17.2
​

• A)$60.
• B)$30.
• C)$6.
• D)$480.
• E)$300.

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Definitions:

Universal Characteristic

A feature or property that is common to all members of a particular category or species.

Cultural Script

Norms and expectations that are culturally specific, guiding behavior and belief systems within a society.

Casual Sex

Sexual activity that takes places outside of a serious romantic relationship and without the promise of a long-term commitment.

Interpersonal Scripts

Frameworks or guidelines for expected behaviors in social interactions or relationships.