Use the Figure Below to Answer the Following Questions

question 25

Multiple Choice

Use the figure below to answer the following questions.

Figure 17.3.1
-Figure 17.3.1 shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for cod, a common resource. A quota that results in the common resource being used efficiently is set at

• A)0 kilograms a week.
• B)4,000 kilograms a week.
• C)3,000 kilograms a week.
• D)5,000 kilograms a week.
• E)1,000 kilograms a week.

---

Definitions:

Expected Return

The anticipated return on an investment, calculated as the weighted average of all possible returns, weighted by the likelihood of each outcome.

Diversification

A risk management strategy that involves allocating portfolio resources or capital to a variety of investments to reduce exposure to any single asset or risk.

Diversification

The strategy of allocating investments among various financial assets or sectors to reduce risk.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual funds and ETFs.