Use the Graph Below to Answer

question 21

Multiple Choice

Use the graph below to answer questions
-**If there were no positive externality _____________ would be the optimal quality

• A)Q*_private
• B)Q*_social
• C)Q*_social - Q*_private)
• D)Point D

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, including taxes, from its total revenues.

Cash Flow

The total amount of money being transferred into and out of a business, especially concerning liquidity.

Current Assets

Resources anticipated to be turned into cash, sold, or used up within a year or throughout the typical operating cycle of the company.

Net Sales

Total sales revenue minus returns, allowances, and discounts.