Question

Quantity (Units) Private Value (Dollars) Private Cost (Dollars) External Cost (Dollars)

1 46 21 6
2 44 24 6
3 42 27 6
4 40 30 6
5 38 33 6
6 36 36 6
7 34 39 6

The table represents a market in which:

a. there is no externality
b. there is a positive externality.
c. there is a negative externality.
d. The answer cannot be determined from inspection of the table.

Answer 1

c. there is a negative externality.

Step-by-step explanation:

At the time when one individual actions develops the benefits for others but at the same time they dont pay so it is to be known as positive externality

At the time when one individual action develops loss but the other who received the loss because of the action of the person so for this they didnt get the compensation so it is the negative externality

As we can see that there is three types of values so the correct option is c.