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:

Draftee

An individual who has been drafted into military service, often compulsory and without the option to choose.

Smoker

An individual who regularly inhales smoke from substances such as tobacco through cigarettes, pipes, or cigars.

Exaggerating the Improbable

The tendency to overestimate the likelihood of highly unlikely events.

Shark

A type of large fish known for its sharp teeth and predatory behavior, living in oceans around the world.