Refer to the information provided in Figure 6.1 below to answer the question(s) that follow. 
Figure 6.1
-Refer to Figure 6.1. Assume Tom is on budget constraint AC and the price of a hot dog is $2.00. Tom's monthly income is
Definitions:
Economically Most Efficient
The state where resources are allocated in a way that maximizes the production of goods and services at the lowest cost.
Labor and Capital
The primary factors of production, where labor refers to human work effort and capital to tools, equipment, and buildings used in production.
Government Subsidized Property Insurance
Insurance programs supported by the government to make coverage available and affordable, often in high-risk areas.
Insurance Costs
represent the expenses related to purchasing insurance coverage, which provides financial protection against potential future losses or damages.
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