Refer to Scenario 16

question 259

Multiple Choice

Refer to Scenario 16.1 below to answer the question(s) that follow.
SCENARIO 16.1: The marginal benefit for a particular food is described by MB = 30 - q, where q refers to the quantity of the food. The marginal cost of producing the food is described by MC = 2q. There is a negative externality associated with food production and the marginal social cost of food production is MSC = 4q.
-Refer to Scenario 16.1. The efficient output level is ________ and the efficient price is ________.

• A) 10 units of food; $20
• B) 6 units of food; $24
• C) 0 units of food; $0
• D) 4.29 units of food; $25.71

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Definitions:

Alcoholism

A chronic disease characterized by uncontrolled drinking and preoccupation with alcohol, leading to physical and emotional dependence and various health issues.

Depression

A common and serious mood disorder that affects how you feel, think, and handle daily activities, characterized by prolonged feelings of sadness and/or a lack of interest in activities.

Interpersonal Therapy

A brief, attachment-focused psychotherapy that centers on resolving interpersonal problems and symptomatic recovery.

Cognitive-behavioral Therapy

A form of psychotherapy that treats problems and boosts happiness by modifying dysfunctional emotions, behaviors, and thoughts.