Figure 113 Figure 11

question 218

Multiple Choice

Figure 11.3 Figure 11.3 shows a market with an externality. The current market equilibrium output of Q₁ is not the economically efficient output. The economically efficient output is Q₂.
-Refer to Figure 11.3.If,because of an externality,the economically efficient output is Q₂ and not the current equilibrium output of Q₁,what does S₂ represent?

• A) The market supply curve reflecting private cost
• B) The market supply curve reflecting social cost
• C) The market supply curve reflecting external cost
• D) The market supply curve reflecting implicit cost

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Definitions:

Positive Stimuli

Items or events that evoke a favorable psychological response, often associated with pleasure, happiness, or motivation.

Dislike

A feeling of aversion or lack of positive sentiment toward something or someone.

Short-term Relationship

A romantic or sexual relationship that is not intended or expected to last a long time.

Low-commitment Relationship

A relationship where the partners have minimal or no expectations of longevity or continuity, emphasizing casual interaction.