Refer to Scenario 16.1. The efficient output level is ________ and the efficient price is ________.

A) 10 units of food; $20
B) 6 units of food; $24
C) 0 units of food; $0
D) 4.29 units of food; $25.71

Negative Externality

A cost that is suffered by a third party due to an economic transaction, where the cost is not reflected in the transaction's final price.

Marginal Social Cost

The total cost society bears for the production of an additional unit of a good, including both direct costs to the producer and external costs to others.

Efficient Output

The level of production at which a company or economy can produce the maximum amount of goods at the lowest cost.