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

question 331

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 external cost associated with the restoration of the 50th historic building, or is there an external benefit? What is the amount of that external cost or external benefit?

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Definitions:

Social Media

Online platforms and technologies that enable users to create, share content, and participate in social networking.

Corporate Social Responsibility

A company's commitment to manage the social, environmental, and economic effects of its operations responsibly and in accordance with public expectations.

CSR Program

Corporate Social Responsibility program, initiatives by a company to assess and take responsibility for its effects on environmental and social wellbeing.

Order Cycle

The total amount of time that elapses from the time a customer places an order until the time the product is delivered to the customer.