FIGURE 16- 1

question 14

Multiple Choice

FIGURE 16- 1
-Refer to Figure 16- 1.Suppose that the perfectly competitive market with no government intervention achieves equilibrium at point A.If the social marginal costs and social marginal benefits are represented by MC1 and MB0,respectively,then there exists

• A)no externalities at all.
• B)a negative external benefit.
• C)a positive external cost.
• D)a negative external cost.
• E)a positive external benefit.

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Definitions:

Petitioning Party

The individual or group that initiates a legal action or request for a formal inquiry.

Divorce

The formal termination of a marriage through a court or authorized entity.

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Custody of a child that confers on the parent the right to make major decisions about the child's life without consulting the other parent.

Major Decisions

Significant determinations or resolutions made, often in the context of business or personal choices, with long-term impacts.