In the Figure 4

question 22

Multiple Choice

In the Figure 4.3, the socially efficient level of output is equal to ________.

• A) q*
• B) q^m
• C) p*
• D) None of the choices are correct.

---

Definitions:

Long-Run Cost Curve

A graphical representation showing the lowest cost at which any given level of output can be produced in the long run, where all inputs are variable.

Industry Supply Curve

A graph that shows the quantity of goods that producers are willing and able to sell at different price levels in a specific industry.

Marginal Costs

Marginal costs are the additional costs incurred to produce one more unit of a product or service.

Total Cost Function

Describes the complete cost of producing a given level of output, summing up all variable and fixed costs associated with production.