-In the Above Figure, Suppose the Quantity Produced Is 40

question 7

Multiple Choice

-In the above figure, suppose the quantity produced is 40. Then

• A) the marginal social cost of the 40th unit is $1.
• B) the willingness to pay for the 40th unit is $2, the equilibrium price.
• C) production is not efficient because MSB > MSC.
• D) production is not efficient because MSC>MSB.

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Definitions:

Maslow's Theory

A psychological theory proposed by Abraham Maslow that suggests human needs are arranged in a hierarchy from physiological needs to safety, love and belonging, esteem, and self-actualization.

Self-actualization

The achievement of unlocking one’s abilities and possibilities, seen as an innate motivation or necessity found within all individuals.

Hierarchy of Needs

A theory proposed by Abraham Maslow suggesting that people are motivated by increasingly complex needs starting from basic physical necessities up to self-actualization.

Innate Need

A fundamental psychological or physiological requirement that is inherent and essential for the well-being and survival of an individual.