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196 • MicroeconomicsFigure 11.2 • Optimal extraction of fossil fuels (Q′, P′) in the presence of negativeexternalities (global marginal external costs), without scarcity.marginal opportunity costs. The individual producer takes prices as givenand therefore should produce up to the point where marginal benefit(price) equals marginal cost (MEC + MEX + MUC), as shown in Figure11.3. Of course, when the producer does not have to pay marginal externalcosts, she is likely to ignore them.User cost can also be thought of as the value of the resource in its naturalstate, the in-ground value before it has been extracted. Marginal user costFigure 11.3 • Optimal extraction (Q≤, P≤) of fossil fuels in the presence ofscarcity and negative externalities.