Use the Following to Answer Questions

question 114

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. The market would provide _____ streetlights. The efficient quantity of streetlights is _____.

• A) 0; F
• B) F; F
• C) E; F
• D) F; G

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Definitions:

Functionalism

An early psychological approach that emphasized the function or purpose of behavior and consciousness.

Unconditioned Stimulus

In classical conditioning, it refers to a stimulus that naturally and automatically triggers a reflexive response without any need for learning.

Puckering

The act of contracting or gathering into wrinkles or folds, often referring to the lips.

Saliva

A clear liquid secreted by the salivary glands in the mouth, important for digestion and maintaining oral health.