Use the Following to Answer Questions

question 153

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 E 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:

Hypodermis

Also known as the subcutaneous layer, this is the innermost layer of the skin, containing fat and connective tissue to provide insulation and cushioning.

Epidermis

The outermost layer of skin, acting as a barrier against environmental threats.

Apocrine Sweat Glands

Specialized sweat glands that usually open into hair follicles, found primarily in the underarms and genital area, secreting a milky sweat that can produce body odor when broken down by bacteria.

Eccrine Sweat Glands

These are responsible for producing sweat to help cool the body and are found throughout most of the body's skin.