Figure 11-18 The Profit-Maximizing Output and Price for the Firm in Figure

question 130

Multiple Choice

Figure 11-18
The profit-maximizing output and price for the firm in Figure 11-18, which charges the same price to all customers, are

• A) 117 and $14
• B) 150 and $22
• C) 150 and $14
• D) 117 and $22
• E) 117 and $24

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Definitions:

Market Failure

A situation in which the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.

Externality

A consequence of an economic activity experienced by unrelated third parties; can be either positive or negative.

Resource Dependency

A theory in organizational studies that describes how external resources dictate the behaviors and strategies of organizations.

External Constituencies

Groups or individuals outside an organization that are affected by its decisions and actions, such as customers, suppliers, and the community.