Question 1
Refer to the information provided in Figure 16.2 below to answer the question(s) that follow.
Refer to Figure 16.2. The efficient amount of cars is
◦ 25.
◦ 35.
◦ zero because any production results in an external cost.
◦ indeterminate from the information given.
Question 2
Refer to the information provided in Figure 16.2 below to answer the question(s) that follow.
Refer to Figure 16.2. The unregulated (market) amount of cars is
◦ 25.
◦ 35.
◦ zero because any production results in an external cost.
◦ indeterminate from the information given.