Use the Following Figure to Answer the Question : Figure

question 43

Multiple Choice

Use the following figure to answer the question : Figure 20-2 : shows 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.
-Refer to Figure 20-2.If the government provides a subsidy of $8 per unit of output,then the:

• A)marginal social benefit will exceed the marginal social cost and the good will be underproduced.
• B)marginal social cost will exceed the marginal social benefit and the good will be underproduced.
• C)marginal social benefit will exceed the marginal social cost and the good will be overproduced.
• D)marginal social cost will exceed the marginal social benefit and the good will be overproduced.

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Definitions:

Urethritis

Inflammation of the urethra, often resulting in pain during urination and an increased urge to urinate.

Causative Organism

A pathogen or microorganism that causes disease or illness in its host.

Hypertension

High blood pressure, usually a chronic condition; often identified by a systolic blood pressure above 140 mm/Hg and/or a diastolic blood pressure above 90 mm/Hg.

CKD

Chronic Kidney Disease, a condition characterized by a gradual loss of kidney function over time.