The Diagram Below Shows the Supply and Demand Diagrams for the Competitive

question 20

Multiple Choice

The diagram below shows the supply and demand diagrams for the competitive market for honey in one region.MC₀ represents private marginal cost and MB₀ represents private marginal benefit. FIGURE 16-3
-Refer to Figure 16-3.Assume there are two types of firms in this region - beekeepers that produce honey and orchard keepers that produce peaches.The bees provide a benefit to the orchard keepers by pollinating their peach trees.If the government subsidizes the beekeepers so as to fully internalize the externality,the equilibrium price of honey would be ________ and the allocatively efficient output would be ________.

• A)3; 80
• B)5; 100
• C)7; 100
• D)9; 60
• E)11; 80

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Definitions:

Functionalist Perspective

Views society as a structure with interrelated parts designed to meet the biological and social needs of the individuals in that society.

Poverty

A condition where individuals or communities lack the financial resources and essentials for a minimum standard of living.

Conflict Theory

A perspective in sociology that emphasizes the social, political, or material inequality of a social group, critiquing the broader socio-political system.

Caste System

A form of social stratification where individuals are born into a fixed social group or caste, determining their social status, occupation, and potential marriage partners.