-Refer to Figure 15-4

question 63

Multiple Choice

-Refer to Figure 15-4. Why is there a deadweight loss?

• A) because the marginal social cost of producing each additional unit in excess of Q₂ exceeds the marginal benefit
• B) because the marginal private cost of producing each additional unit in excess of Q₂ exceeds the marginal benefit
• C) because the marginal social benefit of producing each additional unit in excess of Q₂ exceeds the private cost
• D) because the marginal private benefit of producing each additional unit in excess of Q₂ exceeds the social cost

---

Definitions:

Liability

Refers to the state of being legally responsible for something, particularly in reference to debts or legal obligations.

ULPA

A high-efficiency air filter standard known as Ultra Low Particulate Air, capable of removing at least 99.99% of dust, pollen, mold, bacteria, and other airborne particles.

Limited Partner

An investor in a partnership who is not involved in daily business operations and whose liability is limited to the amount of their investment.

Withdraw

To remove oneself or something from consideration, participation, or engagement in a particular activity, agreement, or situation.