Figure 5-2 Shows a Market with a Negative Externality

question 169

Multiple Choice

Figure 5-2 shows a market with a negative externality.
-Refer to Figure 5-2.The true marginal cost of the last unit produced is represented by the price

• A)Pa.
• B)Pb.
• C)Pc.
• D)Pf.

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Definitions:

Algae

Photosynthetic organisms that are primarily aquatic and can be either unicellular or multicellular.

Lichens

Lichens are symbiotic associations between a fungus and a photosynthetic partner, usually algae or cyanobacteria, living together in a mutually beneficial relationship.

Edible Fungi

Organisms from the fungi kingdom that are safe for human consumption.

Ergot

A fungal disease of cereal crops and grasses, producing toxic alkaloids, historically associated with outbreaks of ergotism in humans.