The Following Figure Shows the Private Cost and Social Cost

question 181

Multiple Choice

The following figure shows the private cost and social cost of producing Good X.

-Refer to the figure above.Which of the following statements is true in this case?

• A) P₁ is the socially optimal price for Good X.
• B) P₂ is the price of Good X in a free market.
• C) Q₂ units is the efficient level of output of Good X.
• D) Q₂ units is the quantity supplied of Good X in a free market.

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Definitions:

Particular Type

A specific category or class with distinct characteristics that distinguish it from others.

Necessary Conditions

Necessary conditions are requirements or prerequisites that must be met for a certain event to occur or for a certain statement to be true, without which the event or statement cannot materialize.

Leadership Theories

A set of concepts and models that explain how leadership influences the performance and behavior of individuals and groups.

Attribution Theory

A psychological theory that explains how individuals infer the causes of their own and others' behavior, attributing it to either internal dispositions or external situations.