Econ 102- Buckley Week 14 TA Handout Negative Production Externality $16 MSC $14 $12 $10 S (MPC) $8 $6 D (MPB) $4 $2 S- 0 2 4 6 8 10 12 14 The graph to above shows the demand (marginal private benefits), supply (marginal private costs) and marginal social cost for a good. 11. Determine the market-clearing price add a line to the graph for that price. 12. Determine the market quantity and add a line to the graph for that quantity. 13. Determine the marginal private benefit of the 10th unit. 14. Determine the marginal social cost of the 10th unit. 15. Is the 10th unit efficient to produce? 16. Will the market produce the 10th unit? 17. Determine the efficient quantity and add a line to the graph for that quantity. 18. Shade and label the area that represents the deadweight loss from an uninternalized externality