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

question 2

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.
-Refer to Figure 20-1.A comparison between the efficient outcome and the market equilibrium reveals that:

• A)the price level when the outcome is efficient is higher than the price at the market equilibrium by $30.
• B)the price level when the outcome is efficient is lower than the price at the market equilibrium by $10.
• C)the price level when the outcome is efficient is lower than the price at the market equilibrium by $40.
• D)the price level when the outcome is efficient is higher than the price at the market equilibrium by $20.

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Definitions:

Hub

The central part of a wheel where it attaches to the axle, or in a broader sense, a focal point or center of activity.

Brake Shoe

A component of a drum brake system, consisting of a curved metal piece with a high-friction material bonded to it, pressing against the drum to slow or stop the vehicle.

Bent Support

Refers to a structural component that has been deformed or damaged, potentially affecting its ability to provide stability.

Brake Drums

Components of a drum brake system in vehicles, consisting of a rotating drum that is forced against brake shoes to create friction and slow the vehicle.