Use the Following to Answer Question

question 204

Multiple Choice

Use the following to answer question:
Figure: Model of a Market for a Common Resource
-(Figure: Model of a Market for a Common Resource) The figure Model of a Market for a Common Resource shows the intersection of the private supply and demand curves. Without any consideration of the marginal social cost of using a common resource, the quantity of the common resource used at Q will be:

• A) larger than is socially desirable.
• B) smaller than is socially desirable.
• C) efficient.
• D) indeterminate without more information.

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Definitions:

Components

The parts or elements that make up a larger system, machine, or piece of equipment.

Final Business Product

The last product offered by a business to its customers, which may have undergone several stages of development or refinement.

Production Goods

Items used in the manufacturing process to produce other goods, including raw materials, machinery, and components.

Support Products

Goods and services bought to be used in the production of other products or to facilitate an organization's operations.