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

question 53

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 6-2
-Figure 6-2 illustrates the four possibilities of the structure of production and consumption for a good or service. In which case is the incentive of producers to be efficient and the incentive for consumers to economize the weakest?

• A) A
• B) B
• C) C
• D) D

---

Definitions:

Factory Equipment

Assets such as machinery and tools used in the manufacturing process to produce goods and services.