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:

Circularity

A geometric tolerance that limits the deviation of a feature's shape from a true circle, ensuring roundness.

Straightness

The condition of being free from curves, bends, or angles; linear alignment without deviation.

Cylindricity

A measure of how much an object's geometry deviates from a perfect cylinder, considering the roundness and straightness along its axis.

Symbol

A mark or sign used to represent an object, function, or process, often used in technical drawings and specifications.