Table 10-1 the Following Table Shows the Private Value, Private Cost, and Cost

question 165

Multiple Choice

Table 10-1
The following table shows the private value, private cost, and external cost for various quantities of output in a market.
-Refer to Table 10-1. What is the socially-optimal quantity of output in this market?

• A)1 unit
• B)2 units
• C)3 units
• D)4 units

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Definitions:

Incentives Necessary

The concept that motivation or behavior is influenced by a reward or incentive.

Ongoing Behavior

Behavior that is currently in process, continuing over a period of time.

Predictive Cues

Indicators or signals that suggest the likelihood of a future event or outcome.

Purposive Behavior

Behavior that is goal-directed or undertaken with a specific intention or objective in mind.