Figure 11-6 -The Demand and Cost Conditions in an Industry Are as an Industry

question 16

Multiple Choice

Figure 11-6

-The demand and cost conditions in an industry are as depicted in Figure 11-6.In the viewpoint of economic efficiency,what would the ideal price and output be?

• A)price,P₁;quantity produced,Q₁
• B)price,P₂;quantity produced,Q₂
• C)price,P₃;quantity produced,Q₁
• D)price,P₁;quantity produced,Q₂

---

Definitions:

Expert Power

Power based on a person’s knowledge and experience.

Reward Power

Power based on a person’s ability to satisfy our needs.

High Concern

The state of being extremely interested, anxious, or care significantly about something or someone.

Low Concern

A state of indifference or minimal interest in particular outcomes or subjects.