Scenario 10-2 the Demand Curve for Restored Historic Buildings Slopes Downward and Downward

question 333

Essay

Scenario 10-2
The demand curve for restored historic buildings slopes downward and the supply curve for restored historic buildings slopes upward. The production of the 50^th restored historic building entails the following:
• a private cost of $800,000;
• a private value of $650,000;
• a social value of $800,000.
-Refer to Scenario 10-2. Is there an externality associated with this market? If your answer is "Yes," is the externality positive or negative?

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Definitions:

Cognitive Distortion

Faulty or biased ways of thinking about oneself and the world that are often negative and irrational.

Token Economy

A behavior modification system used in settings such as classrooms or psychiatric hospitals, where individuals earn tokens for exhibiting desired behaviors.

Chronic Schizophrenia

A long-term, severe, and disabling brain disorder characterized by delusions, hallucinations, and disordered thinking and behavior.

Distorted Thinking

A pattern of thought that is twisted or misconstrued, often leading to negative emotional outcomes or unhealthy behavior.