In the Figure Given Below,the Competitive Supply Curve of a Commodity

question 47

Multiple Choice

In the figure given below,the competitive supply curve of a commodity is given by S₁,the private marginal benefit curve is D₁,the marginal social benefit curve is D₂,and the MB_E curve reflects the marginal external benefits.
-In Figure 20-2,the efficient output is _____ than the market equilibrium output by _____ units.

• A)more;300
• B)less;300
• C)more;100
• D)less;100

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Definitions:

Deferred

Costs or revenues that are recognized at a future date rather than when initially incurred or received.

Released

In a manufacturing or production context, this term refers to products or goods that have been completed and are ready to be shipped or sold.

Inventories

Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process or in the rendering of services.

Year 1

Refers to the first year in a given time series, fiscal period, or timeframe under consideration.