Table 10-2 the Following Table Shows the Private Value, Private Cost, and Cost

question 454

Multiple Choice

Table 10-2
The following table shows the private value, private cost, and social value for a market with a positive externality.
-Refer to Table 10-2. What is the socially-optimal level of output in this market?

• A)3 units
• B)4 units
• C)5 units
• D)6 units

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Definitions:

Income Sharing

A financial arrangement where profits or revenues are distributed among participants or partners, often seen in partnerships and joint ventures.

Partnership Assets

Resources owned jointly by partners in a partnership arrangement, used in the operation of the partnership business.

Cash Distribution

The payment of earnings or capital to shareholders, stakeholders, or partners by a corporation or fund.

Noncash Assets

Assets that cannot be quickly converted into cash, such as real estate, equipment, and inventory.