Figure 5-2 Figure 5-2 Shows a Market with a Negative

question 194

Multiple Choice

Figure 5-2 Figure 5-2 shows a market with a negative externality.
-Refer to Figure 5-2. The private profit-maximizing quantity for the firm is

• A) Q_a.
• B) Q_b.
• C) Q_b - Q_d.
• D) Q_d.

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Definitions:

Unilateral

Pertaining to an action or decision made by one party without agreement or consultation with others.

Executory

Pertaining to a contract or deal that has not yet been completed or fully executed by all parties involved.

Bilateral

Relating to agreements or actions involving two sides, parties, or countries, where each has obligations or considerations towards the other.

Valid

Legally sound and binding; conforming to the law or to established rules.