[单选题]
Using the diagram above, determine the equilibrium price, the socially optimum output, and the size of the negative externality.
| Equilibrium price | Socially optimum output | Size of negative externality |
A. | $4 | 350 000 kg | $0.5 |
B. | $3.5 | 300 000 kg | $0.5 |
C. | $3.5 | 300 000 kg | $1 |
D. | $4 | 300 000 kg | $1 |
A.
B.
C.
D.
参考答案:
C
本题详细解析:
C
The intersection of MPB and MPC determines the equilibrium price ($3.50).
The intersection of MSB and MSC determines the socially optimum output (300 000 kg). The size of the externality is determined by the vertical distance between MSC and MPC, therefore it is $1.
| Market price | Socially optimum output | Size of externality |
---|
A. | incorrect | incorrect | incorrect |
B. | | | incorrect |
D. | incorrect | |