Figure 10-1 This figure reflects the market for outdoor concerts in a public park surrounded by residential neighbourhoods. Price Social Cost Supply (Private Cost) Demand Q 0 'Quantity of Concerts o Y Refer to Figure 10-1. Assume that the concert organizers must purchase a concert permit (the cost for the permit is included in private cost) before organizing the concert. What criterion should the city use in determining whether or not to issue a permit? { ) a) The majority vote of the residents in surrounding neighbourhoods should determine whether a permit is issued. ) b) As long as the value to consumers of concerts exceeds the cost of concerts (including the external costs), the permit should be issued. &= 0) As long as concert organizers are willing to return the park to its original condition after the concert, the N permit should be issued. ) d) The permit should not be issued as long as there are identifiable external costs imposed on residents in surrounding neighbourhoods