The figure above illustrates the marginal private cost and the marginal social cost to the city of Seattle for each rock concert that is offered. It also illustrates the marginal benefit. There is no external benefit

If the city of Seattle puts on 5 concerts per year, then the marginal benefit will A) exceed the marginal social cost.
B) equal the marginal private cost.
C) be less than the marginal social cost.
D) equal the marginal social cost.
E) None of the above answers is correct.

A

Economics

You might also like to view...

Having one central bank responsible for managing the common currency and replacing the national monetary authority provides benefits that include all of the following, EXCEPT:

A) independence and the ability to resist political pressure. B) better performance in keeping inflation stable with no large swings in unemployment. C) the ability to tailor the supply of money for a variety of economic conditions in the member states. D) provision of a stable nominal anchor.

Economics

In a country with floating exchange rates and low capital mobility, an increase in government spending will be

A) highly effective. B) less effective than with high capital mobility. C) not effective at all. D) harmful to the growth of real incomes.

Economics