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

question 7

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,if the current level of output is 700 units,then the marginal social benefit is:

• A)more than the marginal social cost and the output is more than the socially optimum level.
• B)more than the marginal social cost and the output is less than the socially optimum level.
• C)less than the marginal social cost and the output is more than the socially optimum level.
• D)equal to the marginal social cost and the output is equal to the socially optimum level.

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Definitions:

Interest-Based Negotiation

A negotiation strategy focused on the underlying interests, needs, or desires of the parties involved, rather than on predetermined positions or demands.

Selling Price

Selling price is the amount of money for which a product or service is sold to the consumer.

Interest-Based Negotiation

A negotiation strategy focusing on the underlying interests of the parties involved rather than their initial positions.

Illustrate

To explain or make something clear by using examples, pictures, or diagrams.