- Refer to Table 26

question 32

Multiple Choice

- Refer to Table 26.1.At the profit-maximizing output and price,Will's Beach Ball Company will earn a profit equal to

• A)$18.
• B)$70.
• C)$72.

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Definitions:

Socially Optimal

A state or outcome that is considered the most efficient and beneficial for society as a whole, often in terms of resource allocation or welfare.

External Cost

Costs of an economic activity that are not borne by the parties involved but are instead imposed on others or society at large.

Private Value

The value of a good or service to an individual or firm for personal use, as opposed to its value to society or the economy at large.

Socially Optimal

A situation or outcome that is best from the society's point of view, where social welfare, including benefits and costs, is maximized.