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Figure 5-2 Figure 5-2 Shows a Market with an Externality.The

question 54

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Figure 5-2 Figure 5-2   Figure 5-2 shows a market with an externality.The current market equilibrium output of Q<sub>1</sub> is not the economically efficient output.The economically efficient output is Q<sub>2</sub>. -Refer to Figure 5-2.If,because of an externality,the economically efficient output is Q<sub>2</sub> and not the current equilibrium output of Q<sub>1</sub>,what does D<sub>1</sub> represent? A) the demand curve reflecting external benefits B) the demand curve reflecting social benefits C) the demand curve reflecting private benefits D) the demand curve reflecting the sum of private and social benefits Figure 5-2 shows a market with an externality.The current market equilibrium output of Q1 is not the economically efficient output.The economically efficient output is Q2.
-Refer to Figure 5-2.If,because of an externality,the economically efficient output is Q2 and not the current equilibrium output of Q1,what does D1 represent?


Definitions:

Misuse Of Resources

The improper, inefficient, or unethical use of materials, time, or other assets.

Political Behavior

Actions by individuals or groups within an organization that are aimed at using power to influence or achieve a desired outcome.

Reward System

A structured plan designed to motivate and compensate individuals, often used in organizational settings to encourage desired behaviors or achievements.

Team Accomplishments

Achievements or successes achieved through the collaborative efforts of a group working together.

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