Use the Following Figure to Answer the Question : Figure

question 36

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.
-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:

Input-Process-Output Model

A framework used to understand how groups transform inputs (resources like time and labor) through processes (activities and dynamics) to achieve outputs (results or products).

Systems Level

Pertains to the comprehensive, overarching view or analysis of the interconnected components that form a whole entity, often used in organizational or technical contexts.

I-P-O Model

Input-Process-Output Model, a framework used to understand the dynamics of teams and organizational behavior, focusing on inputs, processes, and outputs.

Collective Intelligence

The combined intellectual capacity and knowledge of a group, regarded as surpassing individual contributions.