Consider an Industry That Produces an Output Q with Marginal

question 130

Multiple Choice

Consider an industry that produces an output Q with marginal private cost (MC) and marginal social cost (MSC) as given in the table: Which of the following is TRUE?

• A) The production of each additional unit results in a larger marginal external cost.
• B) The production of each additional unit results in the same marginal external cost.
• C) The production of each additional unit results in a lower marginal external cost.
• D) There are no marginal external costs associated with the production of this good.

---

Definitions:

Unfamiliar Foods

Foods that are not recognized or commonly eaten by an individual, often due to cultural or personal unfamiliarity.

Settling Point

The hypothesis that body weight is regulated at a predetermined, or preferred, level by a feedback control system.

Ecology of Eating

The study of how eating habits are influenced by environmental factors and impact the environment.

Weight Thermostats

The concept suggesting that the body regulates its weight around a biologically predetermined point, akin to a thermostat regulates temperature.