Table 10-1 the Following Table Shows the Private Value, Private Cost, and Cost

question 285

Multiple Choice

Table 10-1
The following table shows the private value, private cost, and external cost for various quantities of output in a market.
-Refer to Table 10-1. What is the equilibrium quantity of output in the market?

• A)2 units
• B)3 units
• C)4 units
• D)5 units

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Definitions:

Consumption Function

An economic formula representing the relationship between total consumption and gross national income, indicating how changes in income affect spending.

Aggregate Income

The sum of earnings for all people and organizations within a specific economic system.

Consumption Function

A mathematical expression in economics showing how total consumption is related to the gross national income.

Consumption Function

A financial equation that illustrates the correlation between overall consumption and the gross national income.