Use the Following Figure to Answer the Question : Figure

question 59

Multiple Choice

Use the following figure to answer the question : Figure 20-1 : D₁ and S₁ are the private demand and supply curves,of a commodity produced by a competitive firm.S₂ reflects the social marginal cost of production,while S₀ represents the external marginal cost.
-According to Figure 20-1,the efficient output is ______ than the equilibrium output by _____ units.

• A)more;400
• B)less;400
• C)more;100
• D)less;200

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Definitions:

Net Operating Income

The profit a company generates from its normal business operations, excluding expenses and taxes.

Activity Variance

The difference between the budgeted amount for an activity and the actual amount spent.

Budgeting

The process of creating a plan to spend your money, outlining how much revenue a company anticipates receiving and how much it expects to spend over a specific period.

Actual Results

The real, achieved outcomes of activities, such as financial performance, compared against planned or projected outcomes.