Consider the Production of Some Industrial Good That Creates Air

question 433

Multiple Choice

Consider the production of some industrial good that creates air pollution. The table below gives the marginal social cost (MSC) , the marginal cost (MC) , and the marginal social benefit (MSB) for each level of output (Q) . The inefficient market quantity is ________ and the efficient market quantity is ________.

• A) 4; 3
• B) 6; 3
• C) 3; 4
• D) 4; 6

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Definitions:

Group

A collection of individuals who interact with one another, share similar characteristics, and collectively have a sense of unity.

Figure-Ground Relationships

A visual perception principle stating that people instinctively perceive objects (figures) as either being in the foreground or background.

Objects

Items, entities, or physical things that can be perceived or manipulated.

Continuity

The state or quality of being continuous; an uninterrupted duration or extension in time, space, or sequence.