-The Figure Above Shows the Market for a Good with an External

question 77

Multiple Choice

-The figure above shows the market for a good with an external benefit.The efficient level of production is ________ units because ________.

• A) 8; marginal benefit equals marginal cost
• B) 8; marginal cost is less than marginal social benefit
• C) 10; marginal cost equals marginal social benefit
• D) 10; marginal social benefit exceeds marginal benefit
• E) 8; marginal benefit equals the marginal external benefit

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Definitions:

Rationalization

The cognitive process of making an excuse or creating a plausible explanation for behaviors, decisions, or feelings.

Smoking Cessation

The process of discontinuing tobacco smoking, which can significantly reduce the risks of developing smoking-related diseases.

Post-traumatic Stress Disorder

A mental health condition triggered by experiencing or witnessing a terrifying event, characterized by flashbacks, nightmares, and severe anxiety.

Flashbacks

Sudden, intense re-experiences of past traumatic events that feel as though they are happening in the present moment.