FIGURE 16-1 -Refer to Figure 16-1. Suppose That the Perfectly Competitive Market

question 123

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 MC2 and MB0, respectively, then the competitive equilibrium quantity is

• A) too low for allocative efficiency.
• B) too high for allocative efficiency.
• C) consistent with allocative efficiency.
• D) not enough information to determine allocative efficiency.

---

Definitions:

Primary Xylem

The part of the xylem (the vascular tissue in plants that conducts water and dissolved nutrients upward from the root) that forms first, mainly in seedlings and young plants.

Secondary Xylem

The part of a plant that contributes to the growth of stem thickness and acts as a conduit for water and nutrients.

Maturation

The process of achieving a fully developed or final state, whether in biological, psychological, or social terms.

Elongation

The stage in DNA replication and protein synthesis where the DNA or the polypeptide chain is lengthened by the addition of new nucleotides or amino acids.