Refer to Scenario 16

question 231

Multiple Choice

Refer to Scenario 16.1 below to answer the question(s) that follow.
SCENARIO 16.1: The marginal benefit for a particular food is described by MB = 30 - q, where q refers to the quantity of the food. The marginal cost of producing the food is described by MC = 2q. There is a negative externality associated with food production and the marginal social cost of food production is MSC = 4q.
-Refer to Scenario 16.1. The competitive output level is ________ and the competitive 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

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Definitions:

Patient-Visits

A measure used in healthcare to denote the number of times patients see a healthcare provider or visit a healthcare facility.

Revenue

The sum of money a company earns from its sales of products or services before deducting any costs.

Flexible Budget

An adjustable budget that shifts depending on changes in levels of volume or activity.

Patient-Visits

A metric used in healthcare to quantify the number of interactions or consultations patients have with healthcare professionals or facilities.