Use the Following Figure to Answer the Question : Figure

question 15

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,the efficient output is _____ than the market equilibrium output by _____ units.

• A)more;300
• B)less;300
• C)more;100
• D)less;100

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Definitions:

Light Passes

The phenomenon of electromagnetic radiation (visible light) being transmitted or refracted through a medium.

Actual Distance

the physical length measured between two points, often using standard units of measurement like meters or miles.

Magnification

An exaggeration or overestimation of the importance or size of something, often seen as a cognitive distortion in psychology.

Optical Illusion

Visual perceptions that differ from objective reality, often involving misleading or distorted images that the brain interprets in a manner that diverges from the physical measurement of the stimulus source.