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:

Distribution Of Power

The way power is allocated or spread among various parties or individuals within an organization, society, or group, affecting how decisions are made.

Effectiveness

The degree to which something is successful in producing a desired result; efficiency.

Tactics

Specific actions or strategies designed to achieve a short-term goal.

Evidence-Based Management

emphasizes the use of scientific evidence to guide decision-making and practices in organizational management.