Use the Following Figure to Answer the Question : Figure

question 47

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.
-In Figure 20-1,the marginal external cost at the equilibrium output level is:

• A)$0.
• B)$40.
• C)$10.
• D)$28.

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Definitions:

Bond Portfolio

A collection of bonds held by an individual or institution as an investment strategy to diversify risk and generate income.

Maturity

The final payment date of a loan or financial instrument, at which point the principal (and all remaining interest) is due to be paid.

Interest Rate Risk

The risk that changes in interest rates will adversely affect the value of an investment, particularly relevant for fixed-income securities.

Variable-Rate Assets

Assets that earn interest at rates which adjust over time based on prevailing market conditions.