Refer to the Graph Below

question 109

Multiple Choice

Refer to the graph below.Assume that curve II represents marginal private cost and curve IV represents marginal private benefit. If there are no externalities,the competitive equilibrium price will be __________ per unit and the competitive equilibrium quantity will be ________ units.

• A) $6.80;400
• B) $6;600
• C) $5.10;300
• D) $4;400
• E) $4;600

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Definitions:

Follicle-Stimulating Hormone

A hormone secreted by the anterior pituitary gland that stimulates the growth of follicles in the ovaries and spermatogenesis in the testes.

ADH

Antidiuretic Hormone, a hormone that helps control the balance of water in the body by affecting the kidneys.

Growth Hormone

A hormone secreted by the pituitary gland that stimulates growth, cell reproduction, and cell regeneration in humans and other animals.

Newborn

Refers to an infant from birth to about 2 months of age.