In graphical form, the presence of an external benefit that is ignored by consumers can be shown as
A) a market demand curve to the left of the market demand curve for which the consumers take the external benefit into account.
B) a market demand curve to the right of the market demand curve for which the consumers take the external benefit into account.
C) a market demand curve the same as the market demand curve for which the consumers take the external benefit into account.
D) the absence of a market demand curve.
A
You might also like to view...
In the above figure, if 4000 bicycles are produced per month,
A) marginal benefit is greater than marginal cost. B) fewer bicycles should be produced to reach the allocatively efficient level of output. C) the marginal cost of production is 2 bottles of soda per bicycle. D) Both answers A and B are correct.
If people work less as the wage rate increases, their labor supply curves are backward bending
Indicate whether the statement is true or false