16. The diagram to the right illustrates a A) positive externality with a marginal external benefit of $10. B) positive externality with a marginal external benefit of $5 C) negative externality with a marginal external cost of $10. D) negative externality with a marginal external cost of $5. E) none of the above. 17. For the diagram to the right, A) the unregulated market quantity is 400, but the allocation efficient quantity is 300. B) the unregulated market quantity is 300, but the allocationy efficient quantity is 400. C) the unregulated market quantity is 300, and the allocation efficient quantity is 300. D) the unregulated market quantity is 400, and the allocationy efficient quantity is 400. A perfectly competitive firm sells its output at the market price of $60 per unit. It has the following cost information. Use the table of information to answer the following 7 questions. Quantity of Total Cost Output 0 $90 1 $100 2 $130 3 $180 4 $250 5 $340 18. At 2 units of output, what is the value of Average Variable Cost? A) $15. B) $20. C) $45. D) $65. E) None of the above. 19. At 3 units of output, what is the value of Average Total Cost? A) $540. B) $180. C) $60. D) $30. E) None of the above. 20.If the firm increases its output from 2 to 3 units, what is the marginal cost? A) $60 B) $25. C) $16.67. D) $50. E) None of the above. 21. At 2 units of output, what is the value of Average Fixed Cost? A) $15. B) $20. C) $45. D) $65 E) None of the above. 22.Given the Market price is $60, what is the marginal revenue for the firm? A) $30. B) $40. C) $50. D) $60. E) None of the above. 5 23.Given the market price is $60, what is the profit maximizing quantity of output? A) 0 units. B) 2 units. C) 3 units. D) 4 units. E) 5 units. 24.At the profit maximizing level of output, what is the value of profits? A) $-10. B) $-90. C) $0. D) $180. E) None of the above