In the Figure Given Below,D₁ and S₁ Are the Private

question 97

Multiple Choice

In the figure given below,D₁ and S₁ are the private demand and supply curves,of a commodity produced by a competitive firm.S₂ reflects the social marginal cost of production,while S₀ represents the external marginal cost.
-From Figure 20-1,we can infer that the efficient output is:

• A)900 units.
• B)500 units.
• C)400 units.
• D)600 units.

---

Definitions:

Agency Problem

A conflict of interest arising between principals (such as shareholders) and agents (like company executives) due to differing goals.

Store Locations

The specific physical points where a business operates or has commercial premises.

Market Value

The marketplace's current rate for the buy or sell transactions of assets or services.

Stock

A category of investment that denotes a stake in a corporate entity and entails a share in the organization's assets and income.