The table below shows the private costs, external costs, and market prices per unit of output for four different industrial chemical processes.
| Chemical Process | Private cost per unit (£) | External cost per unit (£) | Market price (£) |
|---|---|---|---|
| Process Alpha | 40 | 20 | 44 |
| Process Beta | 60 | 30 | 78 |
| Process Gamma | 80 | 15 | 92 |
| Process Delta | 100 | 40 | 135 |
Which process has a market price which takes least account of its negative externalities?
Process Alpha
Process Beta
Process Gamma
Process Delta
378 exam-style questions on AQA A Level Economics 1.8 The market mechanism, market failure and government intervention in markets, covering 1.8.1 How markets and prices allocate resources, 1.8.2 The meaning of market failure, 1.8.3 Public goods, private goods and quasi-public goods, 1.8.4 Positive and negative externalities in consumption and production, 1.8.5 Merit and demerit goods, 1.8.6 Market imperfections, 1.8.7 Competition policy (A-level only), 1.8.8 Public ownership, privatisation, regulation and deregulation of markets (A-level only), 1.8.9 Government intervention in markets, and 1.8.10 Government failure. Each one has a worked solution and a mark scheme showing where the marks go.