Suppose the Socially-Optimal Quantity of Good X Is 2,500 Units

question 74

Multiple Choice

Suppose the socially-optimal quantity of good x is 2,500 units and the market-equilibrium quantity of good x is 3,000 units. When 2,500 units of good x are produced, the

• A)external cost of good x exceeds the private value of good x.
• B)external cost of good x equals the private value of good x.
• C)social cost of good x exceeds the private value of good x.
• D)social cost of good x equals the private value of good x.

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Definitions:

Autonomic Nervous System

A part of the peripheral nervous system that controls involuntary bodily functions such as heartbeat, digestion, and breathing.

Central Nervous System

Comprises the brain and spinal cord, responsible for processing information and controlling most functions of the body and mind.

Somatic

Pertaining to the body, especially as distinct from the mind or the environment.

Autonomic

Relating to the part of the nervous system that controls involuntary actions of the body, such as heart rate and digestion.