@& Safari File Edit View History Bookmarks Window Help 3 & ThuMar 28 4:52PM ng.cengage.com &% MindTap - Cengage Learning R Course Hero L . 2 CENGAGE ' MINDTAP Q Search this course .~ Module Four Quiz @ X 9 . Efficiency in the presence of externalities e g0 Fireworks impose many external costs on society: noise pollution, pets and children that become frightened, accidents leading to property damage and bodily harm, and so on. Therefore, the market equilibrium quantity of fireworks does not equal the socially optimal quantity. The following graph plots the demand for fireworks (their private value), the supply of fireworks (the private cost of producing them), and the social cost of fireworks, including ORDERS both the private cost and external costs. X1 RV RS Use the black point (plus symbol) to indicate the market equilibrium quantity. Next, use the purple point (diamond symbol) to indicate the socially COURSES v optimal quantity. ( \\?,/' Study tools Social Cost e College Success Tips Market Equilibrium Supply (Private Cost) . ' Career Success Tips Socially Optimal Level PRICE OF FIREWORKS Demand (Private Value) @& Safari File Edit View History Bookmarks Window Help 3 & ThuMar 28 4:52PM ng.cengage.com &% MindTap - Cengage Learning R Course Hero L . 2 CENGAGE ' MINDTAP Q Search this course .~ Module Four Quiz @ X the demand for fireworks (their private value), the supply of fireworks (the private cost of producing them), and the social cost of fireworks, including both the private cost and external costs. PROFILE Use the black point (plus symbol) to indicate the market equilibrium quantity. Next, use the purple point (diamond symbol) to indicate the socially ORDERS optimal quantity. RENTALS COURSES v Social Cost e Market Equilibrium @ Supply G AL (Private Cost) College Success Tips Socially Optimal Level Career Success Tips PRICE OF FIREWORKS Demand (Private Value) QUANTITY OF FIREWORKS