Consider an Industry That Produces an Output Q with Marginal

question 84

Multiple Choice

Consider an industry that produces an output Q with marginal private cost (MC) and marginal social cost (MSC) as given in the table: Which of the following is true?

• A) The production of each additional unit results in the same marginal external cost.
• B) The production of each additional unit results in a larger marginal external cost.
• C) The production of each additional unit results in a lower marginal external cost.
• D) There are no marginal external costs associated with the production of this good.

---

Definitions:

Endoplasmic Reticulum

A network of membranes within a cell, involved in protein and lipid synthesis.

Golgi Bodies

Membrane-bound organelles in eukaryotic cells that process, sort, and package proteins and lipids for transport.

Modification

A change or alteration, usually to improve something or to adjust it to different conditions.

Sugar Metabolism

The series of biochemical processes by which the body converts sugars like glucose into usable energy.