FIGURE 16- 1

question 5

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 MC0 and MB1,respectively,then there exists

• A)an external benefit.
• B)a social cost that exceeds the private cost.
• C)an external benefit and an external cost.
• D)no external benefits or costs.
• E)an external cost.

---

Definitions:

Trailer Construction

The process or methodology of building structures designed to be pulled behind a vehicle, often involving the assembly of chassis, body, and components.

Converter Dolly

A trailer towing device that converts a semi-trailer into a full trailer, usually equipped with one or two axles.

Highway Train Combinations

Configurations of vehicles coupled together, often including a tractor unit and one or more trailers, used for transporting goods on highways.

Maximum Height

The tallest permissible or achievable height for a structure, vehicle, or component, often regulated for safety or operational reasons.