-The Above Figure Shows the Marginal Private Cost Curve, Marginal

question 17

Multiple Choice

-The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for raising goats on a common pasture. The efficient outcome is raising

• A) 0 goats.
• B) 40 goats.
• C) 50 goats.
• D) 55 goats.

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Definitions:

Perfectly Inelastic

A situation in demand where the quantity demanded does not change regardless of changes in price.

Short Run

A period of time during which at least one of a firm's inputs is fixed, limiting its capacity to adjust to changes in demand.

Rent

A periodic payment made by tenants to landlords for the use of land, a building, or other property.

Supply Curve

A curve that illustrates the supply for a product by showing how each possible price (on the vertical axis) is associated with a specific quantity supplied (on the horizontal axis).