Use the Figure Below to Answer the Following Question(s)

question 159

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 5-2

Figure 5-2 illustrates the market for a product that generates an external cost. S₁ is the private market supply curve, while S₂ is the supply curve including the external cost. Which of the following is true?

• A) Point a illustrates the competitive private market outcome, while point b illustrates the outcome consistent with economic efficiency.
• B) Point b illustrates the competitive private market outcome, while point a illustrates the outcome consistent with economic efficiency.
• C) The competitive private market outcome is consistent with the conditions for economic efficiency.
• D) The good will tend to be undersupplied relative to the conditions for economic efficiency.

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Definitions:

Integumentary System

The body system comprised of skin, hair, nails, and exocrine glands, functioning in protection, temperature regulation, and sensation.

Thermoregulation

The process by which organisms maintain their internal body temperature within a physiological range despite external temperature changes.

Vitamin E Synthesis

The biochemical process by which organisms produce vitamin E.

Eccrine Sweat Gland

A type of sweat gland found throughout the body that regulates body temperature by releasing a watery sweat onto the surface of the skin.