-The Figure Above Shows the Market for a Good with an External

question 77

Multiple Choice

-The figure above shows the market for a good with an external benefit.The efficient level of production is ________ units because ________.

• A) 8; marginal benefit equals marginal cost
• B) 8; marginal cost is less than marginal social benefit
• C) 10; marginal cost equals marginal social benefit
• D) 10; marginal social benefit exceeds marginal benefit
• E) 8; marginal benefit equals the marginal external benefit

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Definitions:

Buyer's Place

A term referring to the designated location where goods are to be delivered or where a transaction is completed in a sales contract.

Destination Contract

A contract in which the seller is required to ship the goods by carrier and deliver them at a particular destination. The seller assumes liability for any losses or damage to the goods until they are tendered at the destination specified in the contract.

Risk of Loss

The potential for an investment or venture to result in financial loss, often evaluated as part of investment strategies and decision-making.

Carrier

A company or individual that undertakes the professional conveyance of goods or people.