Refer to Scenario 16

question 65

Multiple Choice

Refer to Scenario 16.2 below to answer the question(s) that follow.
SCENARIO 16.2: The marginal benefit for a particular food is described by MB = 60 - q, where q refers to the quantity of the food. The marginal cost of producing the food is described by MC = 3q. There is a negative externality associated with food production and the marginal social cost of food production is MSC = 5q.
-Refer to Scenario 16.2. The efficient output level is ________ and the efficient price is ________.

• A) 10 units of food; $20
• B) 10 units of food; $50
• C) 0 units of food; $0
• D) 20 units of food; $40

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Definitions:

Wears and Tears

The physical and psychological damage or deterioration caused by continuous use or stress over time.

Refractory Theory

A concept in neuroscience that suggests after a neuron has fired, there is a period during which it cannot fire again.

Delta Waves

Brain waves detected by electroencephalography that are associated with deep sleep and brain activity during meditation.

Beta Waves

The brain wave pattern associated with mental activity.