Figure: Model of a Competitive Market

question 198

Multiple Choice

Figure: Model of a Competitive Market
(Figure: Model of a Competitive Market) Given the figure Model of a Competitive Market, if there are no external benefits or costs, the output at Q will be:

• A)larger than is socially desirable.
• B)smaller than is socially desirable.
• C)efficient.
• D)inefficient.

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Definitions:

Muscularis Externa

A layer of muscle in the walls of various organs, including the stomach and intestines, responsible for movement.

Submucosa

Layer of tissue in the digestive tract lying just beneath the mucosa, containing blood vessels, nerves, and glands.

Serosa

Another term for serous membrane, the smooth tissue lining certain internal cavities of the body.

Chyme

The semi-fluid mass of partly digested food that moves from the stomach to the small intestine.