ECON 3Z03 Lecture 3: Lecture 3 Externalities
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4 Oct 2018
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Related Questions
Using the table below, answer the question.
Quantity | Marginal private cost ($) | Marginal private benefit ($) | Marginal social benefit ($) |
500 | 10 | 14 | 16 |
550 | 11 | 13 | 15 |
600 | 12 | 12 | 14 |
650 | 13 | 11 | 13 |
700 | 14 | 10 | 12 |
4. The table represents the market for a good with
a. only an external cost.
b. only an external benefit.
c. both external costs and benefits.
d. no externalities.
On 11 October 2017, the January 2018 NSW wheat futures closing price was $240/MT. Suppose, on the morning of 12 October 2017, meteorologists announced an increased probability of excessive rainfall that can considerably reduce the crop yield. All else held constant, which of the following is the most likely candidate of the January 2018 NSW wheat futures closing price on 12 October 2017?
A. |
the provided information is insufficient |
|
B. |
$230/MT |
|
C. |
$250/MT |
|
D. |
$240/MT |