Table 10-3
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​ -Refer to Table 10-3

question 92

Multiple Choice

Table 10-3
​
​
$$\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Quantity } \\\text { (Units) }\end{array} & \begin{array} { c } \text { Private Value } \\\text { (Dollars) }\end{array} & \begin{array} { c } \text { Private Cost } \\\text { (Dollars) }\end{array} & \begin{array} { c } \text { External Benefit } \\\text { (Dollars) }\end{array} \\\hline 1 & 22 & 12 & 10 \\\hline 2 & 20 & 15 & 10 \\\hline 3 & 18 & 18 & 10 \\\hline 4 & 16 & 21 & 10 \\\hline 5 & 14 & 24 & 10 \\\hline 6 & 12 & 27 & 10 \\\hline\end{array}$$
-Refer to Table 10-3. The socially optimal quantity of output is

• A)3 units.
• B)4 units.
• C)5 units.
• D)6 units.

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Definitions:

Christopher Columbus

An Italian explorer sponsored by Spain, whose 1492 voyage across the Atlantic Ocean led to the widespread awareness of the Americas in the Old World.

Ferdinand

Refers to various historical figures, the most renowned being Ferdinand II of Aragon, who, alongside Queen Isabella of Castile, financed Christopher Columbus's 1492 voyage, leading to the European discovery of the New World.

Selling

The process of transferring goods or services from one party to another in exchange for money or other compensation.

Treaty of Tordesillas

An agreement in 1494 between Portugal and Spain, dividing the newly discovered lands outside Europe between them along a meridian 370 leagues west of the Cape Verde islands.