Refer to the Accompanying Table, Where Q Represents the Quantity

question 87

Multiple Choice

Refer to the accompanying table, where Q represents the quantity produced, internal cost and social cost are given for various quantities, and P represents the price consumers are willing to pay for various quantities. $\begin{array}{lll}Q&\text { Internal Cost }&\text { Social Cost }&P\\100&\$ 40 & \$ 60 & \$ 80 \\200&\$ 50 & \$ 70 & \$ 70 \\300&\$ 60 & \$ 80 & \$ 60 \\400&\$ 70 & \$ 90 & \$ 50 \\500&\$ 80 & \$ 100 & \$ 40 \\600&\$ 90 & \$ 110 & \$ 30\end{array}$ The external cost is equal to _________ per unit.

• A) $60
• B) $70
• C) $20
• D) $50
• E) $30

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Definitions:

Damages

Monetary compensation awarded to a party in a lawsuit for loss or injury suffered as a result of another party's actions.

Torn Condition

The state of being ripped or damaged, usually referring to physical items like paper or fabric.

Dislocated

Often referring to workers who have lost their jobs due to economic changes, making it difficult for them to find equivalent employment.

Sue

to bring a legal action against someone in order to obtain a remedy or compensation.