Use the Following to Answer Questions

question 172

Multiple Choice

Use the following to answer questions:
Figure: Market Failure
-(Figure: Market Failure) Look at the figure Market Failure. Suppose the supply curve represents the marginal cost of providing streetlights in a neighborhood that is composed of two people, Ann and Joe. The demand curve represents the marginal benefit that Ann receives from the streetlights. Suppose that Joe's marginal benefit from the streetlights is a constant amount equal to AC. Providing F streetlights is _____ because the marginal social benefit is _____ the marginal cost.

• A) efficient; equal to
• B) efficient; greater than
• C) inefficient; greater than
• D) inefficient; less than

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Definitions:

PTSD

Post-Traumatic Stress Disorder is a psychological condition that occurs after someone goes through or sees a horrifying event, leading to severe anxiety, nightmares, and flashbacks.

Sexual Predator

An individual who seeks out or engages in sexually predatory behavior, often targeting vulnerable victims for abuse.

AIDA Approach

A marketing strategy acronym that stands for Attention, Interest, Desire, and Action, which outlines the stages a consumer should go through from viewing a product to purchasing it.