Table 10-2
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-Refer to Table 10-2

question 179

Multiple Choice

Table 10-2
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​
$$\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Quantity } \\\text { (Units) }\end{array} & \begin{array} { c } \text { Private Value } \\\text { (Dollars) }\end{array} & \begin{array} { c } \text { Private Cost } \\\text { (Dollars) }\end{array} & \begin{array} { c } \text { Social Value } \\\text { (Dollars) }\end{array} \\\hline 1 & 51 & 45 & 57 \\\hline 2 & 48 & 48 & 54 \\\hline 3 & 45 & 51 & 51 \\\hline 4 & 42 & 54 & 48 \\\hline 5 & 39 & 57 & 45 \\\hline 6 & 36 & 60 & 42 \\\hline\end{array}$$ ​
-Refer to Table 10-2. What is the socially optimal level of output in this market?

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

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Definitions:

Variable Selling

Costs associated with selling activities that fluctuate with the level of sales, such as commissions and shipping charges.

Income Statements

Financial documents summarizing a company's revenues, expenses, and profits over a specific period, showing its financial performance.

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, indicating how much contributes towards covering fixed costs and generating profit.

Call Center

A centralized office used for receiving or transmitting a large volume of requests by telephone, often involving customer service or technical support.