Refer to Figure 10-2. At Q3, how does a consumer value the cost of the product? The marginal consumer values this product less than the social cost of producing it. Every consumer values this product less than the social cost of producing it. The cost to society is equal to the value to society. The marginal consumer values this product more than the private cost.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Figure 10-2
Price
0
Q & Q3 94
Social
Cost
Supply
(Private Cost)
Demand
(Private Value)
Quantity
Refer to Figure 10-2. At Q3, how does a consumer value the cost of the product?
The marginal consumer values this product less than the social cost of producing it.
Every consumer values this product less than the social cost of producing it.
The cost to society is equal to the value to society.
The marginal consumer values this product more than the private cost.
Transcribed Image Text:Figure 10-2 Price 0 Q & Q3 94 Social Cost Supply (Private Cost) Demand (Private Value) Quantity Refer to Figure 10-2. At Q3, how does a consumer value the cost of the product? The marginal consumer values this product less than the social cost of producing it. Every consumer values this product less than the social cost of producing it. The cost to society is equal to the value to society. The marginal consumer values this product more than the private cost.
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