The Diagram Below Shows Demand and Supply Curves for Some

question 99

Multiple Choice

The diagram below shows demand and supply curves for some perfectly competitive market.
FIGURE 16-2
-Refer to Figure 16-2.Suppose that the marginal benefit curve (MB) includes all social benefits and that there is a negative externality in production.In this case, ________ for allocative efficiency.

• A)P1 and Q1 are appropriate
• B)the price P1 is appropriate but the quantity Q1 is too low
• C)the price P1 is appropriate but the quantity Q1 is too high
• D)the price P1 is too low and the quantity Q1 is too high
• E)the price P1 is too high and the quantity Q1 is too low

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Definitions:

Needed Skills

The specific abilities or competencies required to perform a particular task or job effectively.

Psychological Contract

A perceived set of unwritten mutual expectations between an employer and an employee.

Organizational Socialization

The process by which new employees learn the norms, values, and required behaviors of an organization.

U.S. Workforce

The labor pool in the United States, encompassing all employed individuals across various sectors and industries.