Figure 10-10 -Refer to Figure 10-10. the Socially Optimal Quantity of Output

question 83

Multiple Choice

Figure 10-10
-Refer to Figure 10-10. The socially optimal quantity of output is

• A)120 units, since the value to the buyer of the 120^th unit is equal to the cost incurred by the seller of the 120^th unit.
• B)120 units, since the value to the buyer of the 120^th unit is equal to the cost incurred by society of the 120^th unit.
• C)160 units, since the value to the buyer of the 160^th unit is equal to the cost incurred by the seller of the 160th unit.
• D)160 units, since the value to the buyer of the 160^th unit is equal to the cost incurred by society of the 160^th unit.

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Definitions:

Union Bodies

Organizations that represent the collective interests of workers in negotiations with employers regarding wages, work conditions, and rights.

Partnership

A form of business organization defined by the Uniform Partnership Act as “an association of two or more persons who carry on as co-owners of a business for profit.”

Strikebreaking

The act of using non-union workers to replace striking employees in order to keep an organization operational during a labor strike.