Use the Figure Below to Answer the Following Question(s)

question 61

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 5-3
-Figure 5-3 illustrates the market for a product that generates an external benefit. D₁ is the private market demand curve, while D₂ is the demand curve including the external benefit. Which of the following is true?

• A) Relative to economic efficiency, output of the good will be too large and the price too low.
• B) Relative to economic efficiency, output of the good will be too large and the price too high.
• C) Relative to economic efficiency, output of the good will be too small and the price too low.
• D) Relative to economic efficiency, output of the good will be too small and the price too high.

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Definitions:

Continuous Reinforcement

A reinforcement schedule in which a reward follows every correct response, aiding in the rapid learning of a behavior.

Secondary Reinforcement

A concept in conditioning that involves stimuli which, though not naturally rewarding, become reinforcing through their association with primary reinforcers.

Primary Reinforcement

A term in behavioral psychology referring to a stimulus that satisfies a biological need, leading to an increase in the likelihood of a specific response.

Variable Ratio Schedule

A variable ratio schedule in reinforcement theory involves rewarding a behavior after an unpredictable number of responses, promoting a high and steady response rate.