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:

Autonomy

The ability or right of individuals to make their own decisions without interference from others.

Caregiver

An individual who provides care and support to a person who is elderly, disabled, or otherwise in need, often a family member or professional assistant.

Daycare

A service that cares for children during the day, providing supervision, education, and activities while parents are at work or unavailable.

Cognitive Stimulation

Activities or interventions designed to enhance mental processes such as memory, attention, and problem-solving skills.