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:

Sample

A group of people or objects chosen from a broader group to conduct statistical studies.

Population

The entire pool from which a statistical sample is drawn and is the total set of observations that can be made.

Data Acquisition Error

An error that occurs during the process of collecting or obtaining data, which can lead to inaccuracies in the final data set.

Experimental Error

Experimental Error refers to the deviation of observed values from the true value, caused by factors not accounted for in an experiment.