Asked by Shannon Bubar on Jun 03, 2024
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(Table: Externalities from Parks) Use: Table: Externalities from Parks.The table shows the marginal social benefit and the marginal social cost of preserving various amounts of land in a city for a public park.Suppose that parks result in positive benefits to the community as a whole but that the marginal private benefit that any one individual in the community gets from parks is close to 0.At the socially optimum amount of land dedicated to the public park,the marginal social cost will be:
A) $225.
B) $150.
C) $100.
D) $0.
Marginal Social Cost
The complete expense incurred by society for the production of one more unit of a product or service.
Public Park
A piece of public land in urban areas designated for recreational use by the general public, often maintained by local government.
Socially Optimum
A state where resources are allocated in the most efficient way from a societal perspective, maximizing social welfare.
- Clarify the variance between marginal social benefit (MSB) and marginal social cost (MSC).
- Study situations to discern socially ideal allocations of public goods and outside influences.
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Learning Objectives
- Clarify the variance between marginal social benefit (MSB) and marginal social cost (MSC).
- Study situations to discern socially ideal allocations of public goods and outside influences.
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