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

question 30

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. We can say that there is a ________ externality in the production of honey. The curve ________represents the ________ marginal benefit of honey.

• A)positive; MB1; social
• B)negative; MB1; private
• C)negative; MB2; social
• D)positive; MB2; social
• E)positive; MB2; private

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Definitions:

Operations Management

The administration of business practices to create the highest level of efficiency possible within an organization, focusing on converting materials and labor into goods and services as efficiently as possible.

Scheduling Chart

A visual tool used to plan and display the timeline of tasks and activities in a project or process.

Continuous Process

An ongoing operation or production method without interruption or end points.

Product Quality

The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.