A Production Quota Is Set Equal to the Equilibrium Quantity

question 113

Multiple Choice

A production quota is set equal to the equilibrium quantity.At the quota quantity,marginal social benefit is ________ marginal social cost and the level of production is ________.

• A)greater than;efficient
• B)greater than;inefficient
• C)less than;efficient
• D)less than;inefficient
• E)equal to;efficient

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Definitions:

Undue Influence

Manipulation or pressure exerted by one person over another, undermining the latter's free will or judgment, particularly in legal or contractual contexts.

Duress

Force or pressure to enter into a contract.

Lack Of Intention

The absence of a deliberate plan or purpose in performing an action, which can affect the legal interpretation of events or documents.

Unconscionability

A situation where a contract or transaction is so unfair or one-sided that it is deemed oppressive and unenforceable under the law.