The Figure Given Below Shows the Demand and Supply Curves

question 35

Multiple Choice

The figure given below shows the demand and supply curves of steel. S_p is the private supply curve, and S_s is the social supply curve that includes both private costs and external costs.Figure 13.2

-According to Figure 13.2:

• A)both points a and b are socially efficient.
• B)both points a and b are inefficient, from the society's point of view.
• C)point a represents the social equilibrium, whereas point b represents the private equilibrium.
• D)point a represents the private equilibrium, whereas point b represents the social equilibrium.
• E)when external costs are zero, the socially efficient output level is equal to 0Q_s units.

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Definitions:

Cash Sales

Cash sales refer to transactions where payment is made in cash at the time of sale, without deferral.

Petty Cash Account

A small amount of cash kept on hand for minor or incidental expenses, managed through a specified fund.

Purpose

The reason for which something is done or created or for which something exists.

General Journal Entry

A general journal entry is a record of financial transactions that includes details such as date, accounts impacted, amounts, and a brief description of the transaction.