-The Above Figure Shows the Marginal Private Cost Curve,marginal Social

question 158

Multiple Choice

-The above figure shows the marginal private cost curve,marginal social cost curve,and marginal social benefit curve for raising goats on a common pasture.The market equilibrium with no government intervention is raising ________.

• A) 0 goats
• B) 40 goats
• C) 50 goats
• D) 55 goats
• E) None of the above answers is correct.

---

Definitions:

Fixed Overhead

Regular, unchanging costs associated with running a business, such as rent, salaries, and utilities, that do not fluctuate with production volume.

Work in Process

Refers to the cost of the unfinished goods in the manufacturing process including labor, material, and overhead.

Materials Price Variance

The difference between the actual cost of direct materials and the standard cost multiplied by the actual quantity purchased or used.

Raw Materials

Basic materials used in the production or manufacturing process, before being transformed into finished goods.