Scenario 10-4 the Demand Curve for Fire Extinguishers Slopes Downward and the and the Supply

question 73

Essay

Scenario 10-4
The demand curve for fire extinguishers slopes downward and the supply curve for fire extinguishers slopes upward. The production of the 500^th fire extinguisher entails the following:
• a private cost of $10;
• an external cost of $0;
• a private value of $9;
• an external benefit of $3.
-Refer to Scenario 10-4. In order to maximize the total benefit of fire extinguishers to society as a whole, should the number of fire extinguishers produced be less than, equal to, or greater than 500? Explain.

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Definitions:

Triglycerides

A combination of glycerol and fatty acids in the blood.

Lipid

A group of naturally occurring molecules that include fats, waxes, sterols, fat-soluble vitamins, monoglycerides, diglycerides, triglycerides, phospholipids, and others.

Cholesterol Molecules

Organic molecules essential for building cell membranes and synthesizing certain hormones and vitamins, but high levels can lead to cardiovascular diseases.

Uric Acid

is a chemical created when the body breaks down substances called purines, its buildup can lead to gout and kidney stones.