The Diagram Below Shows the Supply and Demand Diagrams for the Competitive

question 37

Multiple Choice

The diagram below shows the supply and demand diagrams for the competitive market for honey in one region.MC0 represents private marginal cost and MB0 represents private marginal benefit.
FIGURE 16-3
-Refer to Figure 16-3.Assume there are two types of firms in this region - beekeepers that produce honey and orchard keepers that produce peaches.The bees provide a benefit to the orchard keepers by pollinating their peach trees.If MB2 represents the social marginal benefit of honey,the external benefit associated with producing one unit of honey is

• A)$1.
• B)$2.
• C)$3.
• D)$4.
• E)$5.

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Definitions:

Sympathetic Nervous System

Part of the autonomic nervous system that activates the body's responses under stress, often referred to as the "fight or flight" response.

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Physical symptoms that a person experiences, which may not have a medical explanation but are often related to psychological factors.

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A steroid hormone released by the adrenal glands in response to stress and low blood glucose, playing a crucial role in metabolism, inflammation, and the body's stress response.