The Desirable Level of Output in a Perfectly Competitive Market

question 159

Multiple Choice

The desirable level of output in a perfectly competitive market if there exists a detrimental externality is

• A)the point at which MSC curve intersects the marginal revenue curve.
• B)the point at which MSC intersects the MPC.
• C)the point at which MSC intersects the marginal private benefit curve.
• D)the point at which marginal revenue curve intersects the MPC.

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Definitions:

Industrial Revolution

Development of large-scale factory production that began in Great Britain around 1750 and spread to the rest of Europe, North America, and Australia.

Worker Productivity

A measure of the output of goods and services produced by a worker within a certain period of time.

Direct Supervision

A management approach where a supervisor directly oversees and controls the work activities of employees.

Sole Proprietor

A business owned and operated by a single individual, where the owner is personally responsible for the business's debts.