Use the Following Diagram to Answer the Following Questions

question 2

Multiple Choice

Use the following diagram to answer the following questions.

-Refer to Diagram 4-3. In the above diagram, if the external costs are internalized (accounted for) , the efficient price and quantity will be

• A) Q₁ and P₁
• B) Q₁ and P₂
• C) Q₂ and P₁
• D) Q₂ and P₂

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Definitions:

Equitable Mortgage

A type of mortgage recognized by a court based on the borrower's intent and the lender's interest, even though the formal legal requirements of a mortgage are not met.

Enforceable

Refers to a rule, policy, or agreement that is legally binding and can be upheld or imposed by law.

First Mortgage

A primary mortgage on property that has precedence over all other voluntary liens or mortgages recorded against the property.

Registered

Officially listed or recorded by an authority to acknowledge legal status or compliance.